'Unregistered organizations' set up overseas to exploit loopholes: expert
The Chinese Ministry of Civil Affairs (MCA) on Tuesday released an updated list of unlicensed social organizations, most of which are registered overseas, while the leader of one listed group that promotes imbibing urine expressed disagreement with the label.
The MCA added 51 names to the list of "offshore and copycat civil organizations" on its official website on Tuesday, urging caution against their attempts to fraudulently collect funds.
Most of the civil organizations are registered overseas or outside the Chinese mainland but were founded by Chinese mainland residents, according to a statement by the MCA. The groups' names usually include words like "China," "Chinese," and "national," and some of the organizations even use the same names as legally registered groups.
Many of the groups make money by collecting membership fees, organizing training programs or proffering awards, the statement said. Some copycat organizations also attempt to extort and blackmail businesses, the MCA claimed.
The China Urine Therapy Association (CUTA), an organization registered in Hong Kong, is listed by the MCA as one of these "unregistered organizations." CUTA reportedly promotes "urine therapy," encouraging its members to drink their own urine to cure everything from colds to cancer, according to People's Daily. The association is active on social networks, with about 4,000 members exchanging their urine therapy experience online daily since the organization was listed by the MCA.
The group's founder, Bao Yafu, told the Global Times on Tuesday that he was disappointed with the list, saying CUTA is a legal nonprofit organization that has officially registered with Hong Kong's government.
The MCA began releasing the names of unlicensed social organizations on its website in March, and the total number has now reached 1,135.
Unlicensed organizations' unauthorized use of legal organizations' names and their associated reputations could be regarded as unfair competition, Li Weimin, deputy director of the Consumer Rights Protection Committee under the Beijing Lawyers Association, told the Global Times.
Li said some of these organizations' activities exceed their authorized scope, and they may take advantage of legal loopholes by registering overseas. These organizations often keep a low profile, making it harder for authorities to supervise their activities, said Li.
Only five organizations on the list have closed so far, according to the MCA.
According to Chinese laws on the management of foreign nongovernmental organizations (NGOs) in China, NGOs must set up legal representative groups in China or cooperate with Chinese groups if they carry out activities in the country. It is also illegal for NGOs to recruit members in the mainland or to conduct or sponsor profit-making activities.
