Important note: Information in this article was accurate in 2006. The state of the art may have changed since the publication date.

Reuters NewMedia - February 7, 2006

Hu Jia's activism set him on a collision course with the Communist Party, which has stepped up curbs on NGOs, the media, the Internet, lawyers, academics and civil rights campaigners to maintain its grip on power.

Hu announced his resignation from Loving Source -- an NGO which he co-founded in 2003 to help orphans of AIDS victims -- to prevent authorities from harassing the group.

"I left to avoid trouble for Loving Source," the 32-year-old told Reuters on Tuesday.

The cabinet spokesman's office had no immediate comment.

Hu has been a thorn in the government's side and was either under house arrest or tight police surveillance for a total of 126 days last year due to his political activism.

Hu quit the group after an international donor which had pledged 100,000 yuan ($12,000) in aid this year pulled the plug. He declined to name the donor, but attributed its decision to apparent pressure from the Chinese government.

The NGO's board has yet to decide on a new head.

The crackdown has also taken its toll on student volunteers, some of whom resigned after questioning by agents from the state security apparatus, he said, adding that others were warned by school authorities to distance themselves from the group.

"Overt and covert pressure scared away some volunteers," the activist said. The group has about 200 volunteers.

With mostly domestic donations, Loving Source is financing the livelihood and education of 135 AIDS orphans, costing anywhere from 600 yuan to 3,200 yuan per student each year. It plans to increase the number of beneficiaries by 50 this year.

Three editors of the group's bi-monthly magazine have also resigned. It has a circulation of about 2,000 and is given away to current or potential volunteers and donors as well as health officials.

Last year, tax auditors sifted through the group's books. No financial irregularities were found.

"Our accountant quit in fear," Hu said, adding that Loving Source closed its bank account and donations were now remitted directly to beneficiaries.

China welcomes international NGOs and the millions of dollars they bring annually to make up for a dearth of government spending in public welfare and environmental protection.

But China's capital, Beijing, required about 200 domestic NGOs to re-register as enterprises last year, banning them from

using words such as "research institute." This made it more difficult for them to raise funds abroad because they could not reflect their status as non-profit organizations.

"It's using soft methods to narrow the space NGOs can exist in. The authorities are worried a civil society would bring about a strong force that challenges its rule," Hu said.

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