Reform of China's Laws for NPOs - A Discussion of Issues Related to Shiye Danwei Reform

Abstract:     
This article provides first and overview of the historical development of the laws and regulations related to NPOs in China since 1988, when the first Regulation on Foundation was published. It then addresses the important problem of reforming China’s public institutions – known as shiye danwei in pinyin. Although some of these institutions are being spun off from government to form profit-making companies, many of them will be placed into NPO form, either as social organizations (SOs) or non-commercial institutions (minban fei qiye danwei or min fei). This presents a host of problems, because the existing SO and min fei regulations are not strong on issues of transparency and accountability. Accordingly, the article proposes remedies for the current situation that would enable important state-owned assets to be “privatized” into NPOs but also to be protected from possible fraud and misuse.

Accepted Paper Series