China will promote the charitable, non-profit sector.

The Chinese government is recognizing that that it needs non governmental organizations that operate throughout the country. A new law should come into effect next year, Asia News reports.

China's central government has pledged to help the charity sector with new regulations, tax breaks and less supervision of the activities of non governmental organizations as a way to plug gaping holes in the country's social security system and help the indigent.

China has an estimate 50 million disabled people, 300,000 orphans, 150,000 homeless children and more than 100 million elderly people. The decision represents an important shift in public policy. Beijing's economic blueprint for 2006-2010 also shows that the government needs the NGOs.

Groups operating in the charity sector had to find a governmental department or agency that would sponsor them; hence the contradictory situation of government-supervised NGOs.

Currently authorities require that the organizations have substantial amounts of capital assets in order to be permitted to operate. The amounts have been too high for most would-be charities and that was the policy's objective.

Civil Affairs Vice-minister Li Liguo asked for opinions on proposals for a new charity promotion law. Mr Li said a draft law would include more preferential policies for the sector and be submitted to the National People's Congress in 2007.