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The Global Integrity Report (report.globalintegrity.org)
2007 Assessment

China: Integrity Indicators Scorecard

China: Integrity Scorecard Report > Sub-Category: Civil Society Organizations
Indicators   Score
1 Are anti-corruption/good governance CSOs legally protected? 100
2 Are good governance/anti-corruption CSOs able to operate freely? 17
3 Are civil society activists safe when working on corruption issues? 33
4 Can citizens organize into trade unions? 75

Indicator and sub-Indicator Details

1 Are anti-corruption/good governance CSOs legally protected?
 
  1a: In law, citizens have a right to form civil society organizations (CSOs) focused on anti-corruption or good governance.
 
Score: YES  NO score
  Comments: We must be aware that there are many restrictions concerning the right to form CSOs, such as to find one mother organization, which is usually a government branch or allies of government, an impossible mission for many civil society orgnizations. That is the reason why there are so many CSOs in China without formal registration or registered as consulting firms.

References: On Oct. 25, 1998, the then Primier Zhu Rongji ratified No. 250 Statute, The Regulation of Social Organizations, which was a statute specifically dealing with the right to form civil society organizations. Article 1 recognized the right to form CSOs. However, articles 3, 9 require the permission from ruling organizations, which is extremely difficult to get.

Peer Review Comments: The law may guarantee the right to form civil service organizations, but, as the reviewer suggests, it's difficult to form such organizations and so many operate in a gray area and are harassed by the government. More importantly, I don't believe that any organization aimed at promoting good governance or focused on anti-corruption would be allowed to exist.

Peer Review Comments: The constitution of the People's Republic of China recognizes citizens' freedom of association but the Regulation on Registration and Administration of Social Organizations, which was issued by the State Council and has been effective since Oct. 25, 1998, gives the exclusive right to the Ministry of Civil Affairs and civil affairs administration departments at or above the county level to permit or approve formation of any CSOs in China. One example will clarify my point. Mr. Mao Yushi, a well-known economist in China, talked in a newspaper interview about his failure to get the government approval to set up a private fund management organization. However, as he is a well-known figure and has many connections and sympathizers in various government organizations, even without formal approval from the Chinese Government his fund management organization has been operating illegally since 1992, offering small loans to farmers in the rural areas. According to the Chinese law, he said that he could be arrested and put in jail but he insisted that the law should be changed and the government should release the control over the formation of CSOs. Therefore, Chinese citizens are not free to form any CSOs.

Suggested other references: 1. Constitution of the People's Republic of China [ LINK ] 2. Regulation on Registration and Administration of Social Organizations [ LINK ] 3. Zhao Xiaogang, Government Should Release Control Over Charity -- An Interview with Mao Yushi, Founder of Fuping School, Southern Weekly, p.C16 & C17, , Dec 6, 2007

  1b: In law, anti-corruption/good governance CSOs are free to accept funding from any foreign or domestic sources.
 
Score: YES  NO score
  Comments: This is really a plus. Chinese CSOs can accept funding from any foreign sources, even from organizations which are banned by the Chinese government. Of course, the funds from banned donors should reach one personal account, not the organization account. A yes score is given because the authorities have full knowledge that CSOs are accepting funds from banned donors.

References: According to the Accounting Rules of Civil Society Orgnizations issued by Ministry of Civil Affairs, valid through Jan.1, 2005, Civil Society Organizations are allowed to establish one bank account of foreign currencies, which implies that CSOs are allowed to accept foreign funds. [ LINK ]

Peer Review Comments: In reality there would be restrictions on certain parties providing money to CSOs.

Peer Review Comments: Although Chinese anti-corruption/good governance CSOs can accept funding from those overseas donors banned by the Chinese government, the overseas funds should reach one personal account, not the organization account. The 'Yes' score ignores the real Chinese legal environment for anti-corruption/good governance CSOs and only acknowledges the roundabout but illegal way of receiving funds from sensitive overseas donors, which may face criminal investigations in China.

  1c: In law, anti-corruption/good governance CSOs are required to disclose their sources of funding.
 
Score: YES  NO score
  Comments:

References: Article 21 of Registration and Administration Rules of Private, Non-enterprises Organizations issued by State Councile of P. R. China on Oct. 25 (Statute No. 251) requires CSOs, including anti-corruption/good governance CSOs, to disclose sources of funding. [ LINK ]

2 Are good governance/anti-corruption CSOs able to operate freely?
 
  2a: In practice, the government does not create barriers to the organization of new anti-corruption/good governance CSOs.
 
Score: 100  75  50  25  0  score
  Comments: People are almost free to form some organizations and can indeed carry out activities. However, it is extremely difficult to get licenses. The authorities know these organizations are working in related areas, but they do not legally ban these activities.

References: 1): He Bin No Permission Is Needed to Establish one CSO china-review.com, June 9, 2006 [ LINK ]

2): Interview Prof. Yu Dazhang, Prof. of Economics, Chinese Academy of Social Sciences and Unirule Institute of Economics, July 14, Office

Peer Review Comments: I don't believe the government allows any such CSOs to be formed.

Peer Review Comments: The first reference points out that the Chinese government creates barriers to the organization of any CSOs in China. In the article, He Bin commented an administrative lawsuit against the Ministry of Health that had ignored nine applications to set up an eye-protection CSO since 2000, arguing that 'No permission is needed to establish one CSO'. This case indicates a harsh reality that in China citizens are not free to form CSOs.

Another example will further clarify my point. Mr. Mao Yushi, a well-known economist in China, talked in a newspaper interview about his failure to get the government approval to set up a private fund management organization. However, as he is a well-known figure and has many connections and sympathizers in various government organizations, even without formal approval from the Chinese government his fund management organization has been operating illegally since 1992, offering small loans to farmers in the rural areas. According to the Chinese law, he said that he could be arrested and put into jail but he insisted that the law should be changed and the Chinese government should release the control over the formation of CSOs. The Chinese government is tolerating those CSOs that have not registered so long as they are not interrupting the political stability.

Suggested other references: 1. Li Gang, Administrative Lawsuit by Dong Jian Against the Ministry of Health Not Replying to His Application for a CSO [ LINK ] 2. Zhao Xiaogang, Government Should Release Control Over Charity -- An Interview with Mao Yushi, Founder of Fuping School, Southern Weekly, p.C16 & C17, Dec. 6, 2007.

  2b: In practice, anti-corruption/good governance CSOs actively engage in the political and policymaking process.
 
Score: 100  75  50  25  0  score
  Comments: Chinese CSOs in general can influence public opinion and in some cases can change public policy. One most striking example was Sun Zhigang Case in 2004. The protests, demonstrations and seminar sorganized by CSOs at last made the Chinese authorities abolish the relevant law. Of course, we should be aware that this strength is limited. According to one Report, over 80 percent of CSOs cannot get registration in China. The activities are thus restricted. Only in some cases can CSOs influence public policy. [ LINK ]

References: 1): Liu Yu, "How to Protect Underpriviliged Group" "Southern People's Magazine" Fairbank Center of Harvard University July 17, 2007

Peer Review Comments: The Communist Party would not allow such organizations to form.

  2c: In practice, no anti-corruption/good governance CSOs have been shut down by the government for their work on corruption-related issues during the study period.
 
Score: YES  NO score
  Comments: One measure to close CSOs is to shut them down, while the other prevalent method is not to allow CSOs to register.

Chang Kun, the head of Xinjiang Snow Lotus, one CSO aiming at increasing the transparency of Chinese AIDS policies and educating people about some AIDs basic knowledge, published one report on the details that his organization was shut down on Oct. 18, 2006, and the way he was intimidated by local policemen.

References: 1): Chang Kun "Chang Kun sues Xinjiang Normal University" 2007 [ LINK ]

2): Interview Mr. Gao Yan, deputy director of Unirule Institute of Economics, August 13, office

3 Are civil society activists safe when working on corruption issues?
 
  3a: In practice, in the past year, no civil society activists working on corruption issues have been imprisoned.
 
Score: YES  NO score
  Comments: There are some others jailed for activities associated with anti-corruption, however, only very few such cases were made public.

References: 1): "Guangcheng, please go hom" chenyuanweijing.spaces.live.com This is a report by Mr. Chen Guangcheng's wife. Chen Guangcheng, a human rights advocate was sentenced to jail for seven months by a local court on Aug. 20, 2006

2): Interview Mr. Gao Yan, deputy director of Unirule Institute of Economics, August 13, 2007

Peer Review Comments: I think there are many such cases, but they are not normally reported.

  3b: In practice, in the past year, no civil society activists working on corruption issues have been physically harmed.
 
Score: YES  NO score
  Comments:

References: 1, interview Mr. Guo Yushan, vice director of Transition Institute, December 25, 2007

Peer Review Comments: Chen Guangcheng was beaten in prison, and he was beaten many times before going to prison. Chen's wife, Yuan Weijing, her lawyers and Hu Jia, a human rights defender, have all been beaten several times.

  3c: In practice, in the past year, no civil society activists working on corruption issues have been killed.
 
Score: YES  NO score
  Comments:

References: Interview Mr. Gao Yan, deputy director of Unirule Institute of Economics, Aug. 13, 2007

4 Can citizens organize into trade unions?
 
  4a: In law, citizens have a right to organize into trade unions.
 
Score: YES  NO score
  Comments: China has trade unions and labor unions. In comparison to trade unions, labor unions face more restrictions. The labor unions are generally headed by party members. China also had reservations about the right to form labor unions when ratifying the International Covenent of Economic, Social and Cultural Rights.

References: Article 35 of Chinese Constitution recognized the right to form associations, including trade unions. [ LINK ]

Peer Review Comments: If we're talking about the law, the right to form unions is given, but they are under the auspices of the party. In reality, no independent union can be formed.

Peer Review Comments: Although the constitution recognizes citizens' freedom of association, the Regulation on Registration and Administration of Social Organizations, which was issued by the State Council and has been effective since Oct. 25, 1998, gives the exclusive right to Ministry of Civil Affairs and civil affairs administration departments at or above the county level to permit or approve formation of any CSOs in China. Chinese citizens are not free, therefore, to form any CSOs, let alone trade unions which are the traditional power base of the Communist Party of China (CPC). Since 1949, there has been one official national trade union, All China Federation of Trade Unions, which is staffed and led by the CPC and is the parent organization of all the provincial and municipal trade unions in China.

Suggested other references: 1. Constitution of the People's Republic of China [ LINK ] 2. Regulation on Registration and Administration of Social Organizations [ LINK ] 3. Li Gang, Administrative Lawsuit by Dong Jian Against the Ministry of Health Not Replying to His Application for a CSO [ LINK ] 4. All China Federations of Trade Unions [ LINK ]

  4b: In practice, citizens are able to organize into trade unions.
 
Score: 100  75  50  25  0  score
  Comments: Trade unions face very few restrictions. However, their role in the political process is not overly important.

References: 1): [ LINK ] A report about the establishment of one trade union.

2): Wang Huitong "The Development of CSOs" in "Studies on Economic Rights" edited by Mao Yushi. 2007

Peer Review Comments: Chinese citizens are free to join the official trade union, All China Federation of Trade Unions, but it is impossible for citizens to organize into independent trade unions. What the social scientist referred to here is actually an association of enterprises set up in Beijing by those entrepreneurs who are from Wenzhou, Zhejiang Province.

Suggested other references: 1. Regulation on Registration and Administration of Social Organizations [ LINK ] 2. Li Gang, Administrative Lawsuit by Dong Jian Against the Ministry of Health Not Replying to His Application for a CSO [ LINK ] 3. All China Federations of Trade Unions [ LINK ]

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