Charity law signals growing role for NGOs in China

China's parliament recently passed a new charity law that is seen to lay down a definitive path for societal actors, particularly businesses, to engage more in charitable giving. Devex takes a look at the new law which is scheduled to take effect in September of this year.

Civil society is tentatively welcoming China’s first law governing charitable and philanthropic activity, passed in March and likely to go into effect in September. The new rules will shape and define the sector, whose contribution to development is now acknowledged by the government, one analyst told Devex.

“This is the first law that came out that really regulates the charitable or philanthropic sector … so it’s very important,” said Shawn Shieh, deputy director of development and operations at Hong Kong-based China Labor Bulletin. “It sends a signal that the government recognizes that this is an important issue and that they have acted on that by making the law.”

The new policy (English translation by China Law Translate) recognizes that charitable and philanthropic activities are crucial to help “promote social progress” and achieve the country’s development goals and objectives. That acknowledgment alone is being welcomed by advocates who have been pushing for a similar policy since 2008.