In January 2017, the Chinese government implemented its new Foreign NGO law that applies to all foreign NGOs that have activities in China, forcing established organisations to rethink their stakeholder engagement and partnership strategies. According to MCI’s research study Achieving Global Growth conducted in close collaboration with the ASAE Foundation, 47% of the organisations who experienced declining or even flat membership as well as product sales on an international level, identified China as one of the top markets for expected growth.
However, since the new Foreign NGO law came into effect, there have been several provisions that may impact the openness and collaboration for further development in China. In more detail, these provisions refer to the following matters:
- In order to ensure a successful collaboration with China there is a need to observe the relevant national provisions.
- The state shall safeguard and support overseas NGOs in carrying out activities in accordance with the law in the mainland of China.
- Representative offices of overseas NGOs may benefit from tax incentives and other preferential policies in accordance with the law.
Maria Tong, Director of Association Management & Consulting for MCI China, shares her thoughts: “To comply with the NGO law, organisations must redefine their engagement in China. Having the right partner strategy is key to success.”
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