China Trade Associations to Detach From Government

On July 8, the General Offices of the CPC Central Committee and the State Council jointly issued theGeneral Plan of Detaching Industry Associations and Guilds from Administrations, aiming to transform government functions, reduce corruption and guarantee fair competition among trade associations. 

The Plan outlined detailed measures for the detachment, including:

• Guarantee independent and equal legal status of all associations and guilds
• Strip off administrative functions of associations and guilds, and establish catalogues to strengthen regulation of association functions
• Require associations and guilds to establish own accounts and conduct independent financial and asset management, separate from fiscal budget and state-owned assets; gradually reduce government funding to zero by 2018
• Equip associations and guilds with personnel autonomy; government employees will not be allowed to hold concurrent posts at associations or guilds; prohibit senior officials from joining associations or guilds within the first three years of retirement

In addition, in order to facilitate the implementation of the program, the Plan listed several supporting policies, including:

• Encourage government departments to purchase services from social capacities including associations and guilds
• Motivate associations and guilds to take part in policy making, law drafting, industry standard formulation
• Strengthen supervision of detached associations and guilds through a credit rating and information disclosure system and comprehensive regulatory system including civil affairs, finance, tax and audit departments

According to the Plan, about 100 national trade associations will be selected for a pilot program in the latter half of 2015, with gradual enlargement of the program over the following two years.