In the context of the Calls for proposals for support for simple and multi programmes promoting EU agri-food products, as regards proposals for programmes targeting Mainland China, applicants are invited to consider the recent application of a law of the People’s Republic of China that impacts trade associations and producer associations.
The Commission was recently informed that the government of the PRC has started to selectively enforce the ‘Law of the People’s Republic of China on Administration of Activities of Overseas Nongovernmental Organizations in the Mainland of China’, adopted by the National People’s Congress Standing Committee on 28 April 2016 and in force since 1 January 2017. An unofficial translation of the law is available here.
According to the information received, it appears that this enforcement is based on an interpretation of the Law according to which all foreign organisations carrying out information and promotion measures in Mainland China are to be classified as nongovernmental organisations (NGOs) and would therefore fall into the remit of the Law, unless they are registered as subjects of the commercial law in their respective EU Member State. Consequently, the law provides that all foreign NGOs (i.e. organisations not registered as subject of the commercial law in their respective MS) are required to either register in China in order to carry out their activity or to delegate their information and promotion actions to an entity registered under Chinese law (“Chinese partner”).
The Commission is currently monitoring closely the developments regarding the enforcement of the law that seems to have already impacted a number of co-financed programmes implemented in China. The Commission considers it its duty to alert potential applicants to 2021 calls for proposals about their obligation to comply with the 2016 Law and invites them to reassess their capacity to implement programmes in China in accordance with the Law.