The Chinese gov probably wants to keep the "Tax-Exempt Foundations" from gaining too much influence. The Chinese are very paranoid about influence in their society. They shut down bloggers who get popular, even if they're just talking about stock tips or dating. They shut down talent shows and professional sports if there's any individual who is becoming too popular. That's why there is comparatively little sports and celebrity culture in China. When the average Chinese person looks out into eternity, the Chinese government wants them to see what the Chinese government wants them to see and not a bunch of celebrities and sports stars, as the average citizens of western nations do.

Ok, at this point I'm starting to wonder what the point of this article was. Is it that China doesn't let people engage in philanthropy or that rich people are not engaging in philanthropy? Because the way the article came across to me was that the rich were not engaging in philanthropy.