This chapter presents the history of China's official not-for-profit organisations (NGOs) policy and its most recent changes. Then, it addresses two important new policies, respectively: the lifting of the dual registration regulation and the government's procurement of public services from nonprofits. This new policy will not only significantly affect the current structure of social service delivery but will also lead to a new government-NGO relationship. The rise of NGOs in the 1980s posed a great challenge to the Chinese government. Although the People's Republic of China (PRC) Constitution guarantees people's freedom of association, from the very beginning, the government's NGO policy has sought to reinforce the stability of the Chinese Communist Party (CCP) regime. When NGO affairs in China touch sensitive political issues such as human rights and social justice, NGO policy becomes highly risky and intricate. At the end of 2001, China joined WTO, and a year later the People's Congress passed the Government Procurement Law (GPL).