China relaxes grip on online gaming after $80bn market drop
China has approved 105 domestic video games, including titles from major companies such as Tencent and NetEase, reports Bloomberg. This move suggests a potential easing of the country's recent tightening of industry controls, which caused an $80 billion market drop last week. Both Tencent and NetEase witnessed a significant decline in their market value on Friday. According to a WeChat post by an industry association, the latest approvals show Chinese authorities' support for online gaming development.
New concerns amid approvals
Last Friday, the National Press and Publication Administration (NPPA), China's primary gaming regulatory authority, unveiled fresh regulations aimed at curbing the growth of online games. This reignited concerns among observers that Chinese authorities may initiate another series of tech-related crackdowns in the wake of the regulator's announcement. The regulations include a spending cap for adult players, a ban on rewards for frequent log-ins, prohibiting forced player duels, and barring content that violates national security.
Government seeks fair practices and innovation
According to Yang Wenfeng, a senior vice president at Shanghai-based games studio Paper Games, the recent events indicate the government's desire for a more diverse gaming landscape with higher quality and innovative content. Authorities prefer publishers to profit through fair practices and product innovation rather than relying on aggressive monetization strategies or promoting "pay-to-win" games. The NPPA stated it would listen to feedback from stakeholders to improve the new rules.
