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China’s revised charity law lacks incentives to spur donations despite ‘common prosperity’ drive
- Amid two high profile donations, China passed revisions to its 2016 Charity Law last month, but industry observers say the changes do not go far enough
- Oppo and Vivo co-founder Duan Yongping, as well as Xiaomi founder Lei Jun, made considerable donations to universities at the end of last year
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Mandy Zuoin Shanghai
Oppo and Vivo co-founder Duan Yongping may already be one of the most high-profile Chinese billionaires so far this year, after donating 1 billion yuan (US$140 million) to his alma mater on New Year’s Eve.
Duan’s donation to Zhejiang University came just a month after Xiaomi founder Lei Jun had also hit headlines for donating 1.3 billion yuan to Wuhan University – the largest individual donation ever given to a Chinese university.
The donations were made just as China revised its charity law to promote philanthropic activity, which has been seen by lawmakers as lagging behind private wealth accumulation, despite increasing generosity from tycoons amid Beijing’s “common prosperity” drive in recent years.
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The revisions to the 2016 Charity Law was passed on December 29, and will take effect in September.
But while Beijing has attempted to make better use of charity to improve social equality, the changes to the law are unlikely to generate more acts as they offer no incentives and remain restrictive, industry observers said.
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With a new clause stating that charitable work is subject to the leadership of the ruling Communist Party, the amendments focus on the regulation of arising issues, including emergency relief and online appeals.
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