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RUEKJCS/DIA WASHDC 0348
RUEKJCS/SECDEF WASHDC 0025

UNCLAS SECTION 01 OF 02 GUANGZHOU 000678 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/CM, OES/PCI, DRL, AND EAP/PD 
STATE ALSO PASS USTR FOR CHINA OFFICE 
 
E.O. 12958: N/A 
TAGS: ECON PGOV SOCI SCUL EAID SMIG PHUM CH
SUBJECT: Slow Improvements in South China NGO Environment 
 
REF: Guangzhou 17 
 
GUANGZHOU 00000678  001.2 OF 002 
 
 
(U) This document is sensitive but unclassified.  Please protect 
accordingly.  Not for release outside U.S. government channels.  Not 
for internet publication. 
 
¶1. (SBU) SUMMARY: Since the May 2008 Sichuan earthquake, when the 
Chinese government tacitly allowed some non-government organizations 
(NGOs) to play a role in the relief effort, NGOs have had relatively 
more freedom in which to operate, according to NGO leaders and 
academics in south China.  However, the Chinese government still 
maintains a watchful eye on NGO-related activities and the overall 
political environment is not ideal for fostering NGO growth.  South 
China experts say that the Chinese government's improved 
understanding of NGO functions and greater international exposure 
are essential for the sector to mature.  They cautioned that the 
road ahead would be difficult, but nevertheless, they believe that 
the sector's development is inevitable.  End Summary. 
 
Signs of Government Openness towards NGOs 
----------------------------------------- 
 
¶2. (SBU) Chinese NGOs are enjoying greater freedoms to carry out 
their missions compared to several years ago, according to Li 
Weining (aka Miles W.N. Lee), a senior research fellow at China 
Development Institute (CDI), a government-funded think tank in 
Shenzhen.  With NGOs playing a major role in the relief effort in 
the aftermath of the May 2008 Sichuan earthquake, the Chinese 
government has tacitly afforded NGOs with greater operational space, 
said Li.  An organization making use of this window is the Institute 
of Civil Society (ICS) at Sun Yat-sen University in Guangzhou, which 
has set up a one-year community building project to help villagers 
in Sichuan reconstruct their community.  Professor Zhu Jiangang, 
director of ICS, said that the institute's existence and its work in 
Sichuan and other provinces prove that there is space in China to 
support NGO development and that NGOs can cooperate with the 
government and businesses to do this work. 
 
¶3. (SBU) China's official position on NGOs has also begun to show 
signs of change.  In a recent episode of "Economy 30-Minutes" on 
China's state television CCTV watched by ConGenOff that spotlighted 
China's trafficking-in-person efforts, the host encouraged and 
underscored the importance of NGOs working with the government to 
solve missing children cases.  The host referred to NGOs not by the 
sanctioned minjian zuzhi (civil society organization) label, but by 
the often avoided feizhengfu zuzhi (non-government organization) 
term.  (Comment: The explicit use of the term feizhengfu zuzhi and 
the proposed cooperation between NGOs and the government via CCTV 
were breaks from the past.  End comment.) 
 
¶4. (SBU) Local governments in south China have also increased their 
funding for social programs.  Shenzhen's government has begun to 
grant annual subsidies of up to RMB 60,000 to social programs run by 
government agencies, businesses, schools, and NGOs, according to 
Zhou Xinjing, founder of Allied Social Work Services Center of 
Shenzhen (ASWS).  Her organization, a registered NGO that uses 
proceeds from the sale of used items to support a local migrant 
community, applied for one of these grants and was recently notified 
of their award.  Zhou suggested that such subsidies may be one of 
the reasons for the rapid development of social work centers and 
NGOs in Shenzhen.  However, she speculated that many new 
organizations are simply trying to get the subsidies rather than 
providing social services.  For this reason and other management 
considerations, the failure rate of NGOs in Shenzhen and surrounding 
areas is relatively high despite the local government's effort to 
provide financing, said CDI's Li. 
 
Chinese Government Barriers to Civil Society Growth 
--------------------------------------------- ------ 
 
¶5. (SBU) Despite the seemingly more open social atmosphere, China's 
current political and legal environment is still not ideal for 
cultivating civil society growth, said a south China NGO expert.  He 
argued that not only does China's one-party system more generally 
foster apathy and remove a sense of personal responsibility for 
society, it also lacks an effective legal framework in which NGOs 
 
GUANGZHOU 00000678  002.2 OF 002 
 
 
can function.  Although organizations may apply to register as a 
"civil society organization" with China's Ministry of Civil Affairs, 
few actually meet the requirements.  Many organizations operate 
illegally or as business enterprises, putting them outside any legal 
framework governing NGOs, said the expert.  For organizations that 
are registered as an enterprise, this also affects their fundraising 
abilities.  Because of their legal status, such organizations are 
precluded from applying for government grants or conducting 
fundraising campaigns, explained one Shenzhen NGO leader.  Also, 
these organizations do not appeal to businesses in search of 
corporate responsibility activities because it cannot provide any 
tax incentives.  Chinese corporations are only now in the early 
stages of recognizing the concept of civic responsibility and its 
concomitant public relations benefits. 
 
¶6. (SBU) The government continues to monitor NGO activities closely 
in south China, particularly during important anniversaries and 
events.  In the days approaching the October 1 National Day, 
ConGenOff attended a Hong Kong-based AIDS charity's celebration of 
its new office opening in Guangzhou.  During the event, police 
officers entered the office and questioned the organizers.  They 
also required anyone entering or leaving the unit to register 
his/her name, identification card number, and work unit.  ConGenOff 
witnessed two men, who event guests speculated were members of the 
Ministry of Public Security, briefly videotaping the event.  Several 
renowned scholars on HIV/AIDS who were scheduled to speak at the 
event reportedly cancelled at the last minute because of the tight 
surveillance.  The director of the foundation was purportedly taken 
in by local police for questioning until the early morning hours. 
 
Difficult Road for an Inevitable Trend 
-------------------------------------- 
 
¶7. (SBU) South China experts say that the growth of China's civil 
society is, however, inevitable.  They believe that the Chinese 
government recognizes the importance of NGOs in developing a healthy 
civil society.  It will take another 10 to 20 years for the NGO 
sector to mature, said one expert.  Financial accountability is 
essential to the sector's development.  Additionally, the sector 
needs greater exposure to international NGO operating standards and 
practices in the form of international assistance and cooperation. 
The Chinese government, however, also needs to do its homework to 
understand how NGOs can contribute, said the expert.  With that 
understanding, Chinese NGOs will have more freedom to operate. 
 
¶8. (SBU) Another researcher cautioned that the road ahead for NGOs 
is a difficult one, especially for advocacy organizations or rights 
defenders, because the political environment can be uncertain.  He 
said that the government needs to understand that "action does not 
equal an intention to overthrow" the current establishment. 
However, he remains optimistic, saying that a new law governing 
philanthropy, expected to be released next year, will further expand 
the space for NGO development. 
 
 
GOLDBECK