Foundations in China: From Statist to Corporatist

Abstract

This article discusses the development of philanthropic foundations in China. In the early stage of development from 1980s to 2003, most Chinese foundations were established by the government. They were given a special privilege to raise funds from the public but their projects were usually carried out through an “encapsulated system,” that is, within the administrative networks of the government agencies. The 2004 reform in the regulation of foundations allowed space for nongovernmental foundations to emerge, particularly those founded by corporations or individual elites. The Chinese government expected most of them to rely on their own funds and did not grant them right to conduct public fundraising. Some of these foundations later became “policy entrepreneurs” striving for equal right in fundraising and making grants to nongovernmental organizations. Regardless of these changes, the Chinese state still possesses eminent regulatory power and informal political influences in the sector. The foundation regime has changed from a statist to a corporatist model but is unlikely to move further to a liberal one.