Dual regulation system is a unique regulation system that is used in the supervision of NGOs in China. All NGOs in China have two regulators, one is called “registration administration”, generally the department of civil administration, which a NGO must register in its name list; another is called “competent business unit”, generally a department of government, which, is related to the field of the very NGO’s practice in some extent, administrate and is responsible for a NGO’s daily doings. As one of the important member of NGO groups, trade associations in China have to have two regulators, the same like all the other NGOs.
The dual regulation system can be originated in the late 1980s, although in that time the very system played an useful role in the process of disciplining the NGOs in a mess condition, it is hard to say that regulation system is good for the development of NGOs today, especially trade associations. Because of this, so many trade associations can not find an competent business unit, since departments of government don’t want to be responsible for the association’s doing which may be risk to their leader’s political future. This leads to the fact that many association can not be established, some of them chooses playing underground with no law protection. Dual regulation system also tightly connects trade associations and government, which causes the dependency of trade associations to the government, and deviates the best way of self-discipline of industry.
In recent years, many trade association leaders and many scholars are appealing for canceling the dual regulation system in trade association field (not all NGOs), in order to stimulate the development of trade associations. However, until now, anyone or any group wants to register a trade association must find an competent business unit first, so the bad condition continues. But maybe someday, (maybe not too long), the bad condition will be broken, (it is hardly to occur in the whole NGO field, but it is realistic to occur in trade association first), and golden age of trade associations in China will coming soon.