CEO DATELINE - New Chinese law could crimp activities of foreign associations
CEO DATELINE - New Chinese law could crimp activities of foreign associations
- May 2, 2016 |
- WILLIAM EHART
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A Chinese law passed April 28 establishing new requirements for non-governmental organizations is causing concern among U.S. associations with Chinese interests.
ASAE Senior Vice President of Public Policy Jim Clarke said the new law—while an improvement over earlier drafts—was vague and could interfere even with the simple act of conducting meetings in China. Among the law's provisions is a requirement that organizations register with the Ministry of Public Security. The law takes effect Jan. 1, 2017, but details of how it will be implemented are not known.
"Before, it didn't take anything for a trade association to make a trip to China," Clarke said. "There wasn't any registration. So now this will be a hurdle, and when you put the Ministry of Security in charge (as opposed to the Ministry of Civil Affairs), that indicates that it's not as welcoming as it might be."
Clarke said he has spoken with a number of U.S. associations about the Chinese move.
"Every group that's analyzed it just thinks it's pretty vague," he said.
ASAE was among a number of organizations commenting last year on an earlier draft of the legislation, but the new law is less stringent. It exempts foreign schools, medical facilities and academic and research groups in natural sciences and engineering technology, according to the Associated Press.
One expert said the impact might be limited, as the Communist Party already has the power to control what it wants.
"This law, from what I can see, is really just reminding people of what everybody always knew—if you are doing anything that they feel undermines their authority, they'll kick you out," said Steve Worth, senior consultant at Worth Consulting, which advises associations on global activities.
The law forbids foreign organizations to endanger China's national security and ethic unity. It also requires foreign-based groups to be vetted by police before operating in China and submit data on operations and finances on demand, and have a local sponsoring organization.
The Obama administration sternly criticized the law.
"We urge China to respect the rights and freedoms of human rights defenders, journalists, business groups, development professionals and all others who make up civil society, including by protecting the ability of foreign NGOs to operate in China," National Security Council spokesman Ned Price said in a statement.
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