China's draft charity law, the country's first to regulate charity activities, bans charity groups from engaging in or sponsoring activities undermining "state security and public interests."

The bill will be submitted Wednesday afternoon for the third reading to the National People's Congress at its ongoing annual session, following two readings at the bi-monthly sessions of the NPC Standing Committee.

According to the bill released before the meeting, charity groups will face punishment, if they engage in or sponsor activities undermining state security or public interests, and may have their registration revoked in serious cases.

The bill clarifies the registration of charity groups. The applicants should apply to the civil affairs department of county governments or higher levels for establishing a charity organization and will get a reply within 30 days. If the organization meets the standards, the government will approve the application.

The organizations that have already registered at the civil affairs department can apply to be confirmed as charity groups.

A charity organization should meet the standards such as engaging in non-profitable charity activities, having its own name, a residence, a charter, capital and management.