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Corporate Social Responsibility & Sustainability in China

Corporate Social Responsibility in China

World Instant Noodle Association Has NGO Troubles

August 14, 2007
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Law & Order

If charities and chambers of commerce are worried about how to obtain full legal registration in China, a lawsuit in Hebei involving the International Ramen Manufacturers Association is a situation to monitor.

Hao Jiguang, a lawyer in Hebei Province, has accused the China branch of the International Ramen Manufacturers Association of being an illegal non-governmental organization and has asked the Ministry of Civil Affairs to conduct an investigation on the identification and workings of the organization.

Hao said he previously demanded that the Ministry of Civil Affairs investigate the legitimacy of the branch, which has recently launched a controversial 20% price rise of instant noodle products around China. Hao said the International Ramen Manufacturers Association, which was established in Tokyo in March 1997, is a foreign business association, and according to the State Council's regulations, a foreign business association masquerading as a non-profit organization must not participate in any business activities in China. But Hao says the China Branch of the International Ramen Manufacturers Association is actually an organization set up by Chinese enterprises and business undertakings.

Hao says he has not received a response from MCA regarding his appeal which is expected to be received within 60 days.

Chinese domestic instant noodle manufacturers, including Master Kong and Jinrilang, recently increased the price of their instant noodles by about 20%. As soon as the price was increased, local media report that Qiu Baochang, a legal consultant from Chinese Consumers' Association, sent an email to the National Development and Reform Commission, saying that the collective price increase of the instant noodle enterprises does not conform to the market principle and violated the Price Law of China.

To be a fully registered NGO in China, organizations must register with the MCA and complete other formalities.

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