Beijing to cut its ties to trade associations
Industry groups - long criticised for abusing government links - will lose funding and be made to operate as independent NGOs
The mainland's heavily government-reliant trade associations will have to learn to stand on their own feet, as the State Council has unveiled a plan to cut their ties to the administration.
A reform scheme released by the council on Wednesday ordered trade associations to sever all organisational, operational, financial and personnel connections with the government, which will stop financing them by 2018.
Some 100 associations will come under the scheme this year, and more will be included in 2016 and 2017.
Industry associations have long been a subject of controversy as many use their government connections to demand arbitrary charges from firms.
It is common to find retired or incumbent government officials chairing industry associations, which rely heavily on the administration to operate and follow its orders like subsidiary bodies.
The state auditor found that the Chinese Society for Urban Studies, commissioned by the Ministry of Housing and Urban-Rural Development to conduct assessments on green buildings in 2013, charged more than 14million yuan (HK$17.7 million) to companies who applied for assessments, despite not having the approval to do so, The Beijing News reported.
Under the new scheme, associations affiliated with the government will have to register and operate independently as not-for-profit NGOs. They will be stripped of administrative functions granted by the government - except for those written in law.