Industry associations should not become ‘second govt’

During the ongoing two sessions, I heard some private entrepreneurs complaining about industry associations, which regard themselves as government agencies rather than representatives of enterprises.

Some of them complained that industry associations only collect membership fees without doing anything constructive, and meanwhile they have to endure the bureaucratism of industry associations.

Industry associations are often treated as semi-official organizations in China, not only because many retired government officials hold positions in these organizations, but also due to their intimate relationships with government agencies.

China had more than 70,000 industry associations by the end of 2012, including 600 nation-level ones, according to the latest data available from China Federation of Industrial Economics in July 2013.

It is unfair to deny the positive aspect of industry associations, which play a significant role in coordinating between government agencies and enterprises as well as safeguarding the rights of their members, especially when Chinese companies receive unfair treatment in anti-dumping and anti-subsidy investigations launched by foreign companies.

China's leadership has vowed to accelerate the shift of governmental functions. The All-China Federation of Industry and Commerce handed over a proposal during the ongoing two sessions, suggesting industry associations take over some governmental functions.

The proposal has raised concerns by some private entrepreneurs that the industry association will become "the second government."

Shen Jian, a CPPCC member, suggested speeding up legislation on industry associations, such as specifying legal status, according to the People's Daily on Saturday.