Since 2015 rights-based NGOs, lawyers, feminists and journalists have endured the most stringent crackdown since 1989. Simultaneously the Xi Li administration has pushed forward a series of laws, policies and regulatory changes to enable service-oriented NGOs to apply for government contracts to provide welfare services. This seemingly Janus-like policy of welfarist incorporation can be traced back to the Hu–Wen period, often described as a lacklustre period, despite significant efforts to tackle issues of poverty and inequality. This article argues for a more balanced appraisal of this period by exploring in depth the complex politics underpinning efforts to pluralize welfare provision by involving service-oriented NGOs. It explores three sets of politics influencing this policy process: inter-institutional politics; state/non-state actor politics; and domestic/external politics. Furthermore, it considers processes of gradual institutional change adopted by key political actors to achieve these ends.
