We are all aware of the growing strength of the market economy in China. We are less conscious of the growing importance of the benevolent sector in this burgeoning society. In order for the emerging civil society to flourish it is necessary to create a legal environment that enables citizens to form legal associations and raise the funds necessary to carry on community benefit activities. The Chinese government recently charged the Ministry of Civil Affairs (”MCA”) with the task of drafting a new Charity Enhancement Law.
The drafting committee is under the direction of Wang Laizhu who is the Deputy Director of the MCA’s Legislative Affairs Bureau. The MCA has appointed Blake Bromley as the official foreign consultant on this law. Blake has been to Beijing three times in the last several months and will return as many times in the next few months. While he is not able to disclose the direction this new law will go, Blake keeps reminding the drafting committee that the 17th Party Congress instructed them to be innovative in developing this law. Blake has put forward some radical concepts to create distinctive tax incentives to enhance funding for charities. It will be interesting to learn the extent to which China becomes a model for novel legislation as it blends learning from international experience with innovation.

