The law eases restrictions on how overseas Non-Governmental Organizations can operate in mainland China.

Shanghai Roots and Shoots was approved as a non-profit organization with foreign affiliation in the country more than 10 years ago. It is from the global environmental education organization founded by world-renowned primatologist, Jane Goodall. The organization says although it has an overseas background, its operation in China follows local regulations and its routines match closely with local NGOs.

"We are part of a global network. But it's completely up to each office how to implement our goals and action plans, how to create our own projects. So it's very loosely structured. Every year we have to file reports with all the information on the activities, projects as well as the finance information. We submit all the information to the government," Zhong Zhenxi, executive director of SHanghai Roos & Shoots, said.

The draft law seeks to remove the restriction limiting each NGO to one office on the Chinese mainland. If approved, they will be allowed to open offices according to needs. Zhong says the country has slowly made it easier for NGOs to operate, which helps promote further development.

"There are smaller organizations started by maybe foreigners who live in Shanghai. They are registered completely as local organizations. I think in terms of registration, the government has simplified the process. If you want to register a local non-profit organization it's much easier now," Zhong said.

A lawyer says the country's draft law will lead to better management of overseas NGOs operating in China. He says at the moment there is no specific regulation for NGOs. He adds the registration status for some overseas NGOs can be confusing, as many were set up in different forms ranging from a foundation to a business. This, he says, makes it difficult for the government to supervise their funding and operation.

"It's necessary to set up a law for overseas organizations in China. We've now realized that these organizations can help solve social problems, like protecting labor rights or environmental protection. If the draft passes, more NGOs will come to China and operate under governmental supervision, which will be better for everyone," Zhou Kaichang, managing partner of Hui Ye Law Firm, said.

China's Ministry of Public Security says there are about 1,000 overseas NGOs working long-term in China.