China's top legislature, the NPC Standing Committee, has wrapped up its four-day bimonthly session, and passed the country's first law to regulate overseas non-governmental associations, or NGOs, in China. The law aims to regulate their activities in the country, and protect their rights and interests. 

The new law targets the activities of NGOs founded outside the Chinese mainland.

However, exchanges and cooperation between Chinese and overseas colleges, hospitals and research institutes of science and engineering, will not be affected as they follow existing regulations.

Many overseas NGOs have engaged in charity and academic exchanges in China and have played a positive role since the reform and opening-up drive started in the late 1970s. Since their number has grown quickly and their activities have intensified, it is necessary to have a law to regulate and guide them.

The new law removes the restriction of allowing only one office on the Chinese mainland.

These organizations will now be able to open offices based on their operational needs, but the number and locations must be approved by the regulatory authority.

The bill also takes away a five-year limit on operations of representative offices in China.

According to the bill, representative offices of overseas NGOs and overseas NGOs carrying out temporary activities in China, are forbidden from recruiting members on the mainland without the permission of the State Council.

The restrictions on staff and volunteers are scrapped, but tougher rules are imposed on finances including the source of funds, expenses and revenues. They should have their financial reports audited and published.

Some foreign journalists worry that this will mean more restrictions on foreign NGOs.

But Chinese authorities say the move is a justified one. 

Overseas NGOs engaging in illegal activities, such as subverting the state and splitting the nation, will be blacklisted and banned from operating on the mainland.

Law makers stressed that the basic principle in drafting this law, is to combine the regulation with services so as to facilitate NGO operations in China.