Page 6 - The South China Business Journal
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China Resumes License
Approval: What’s Next for its
By Giulia Interesse, China Briefing, Dezan Shira & Associates
As China resumes issuing gaming license approval, its regulatory
control has not loosened on the gaming industry. We comment on
recent developments and anticipate future trends.
On April 11, 2022, China’s National Press and reflects an undeniable truth: tough times continue
Publication Administration (NPPA), the body to be in store for China’s gaming companies as the
in charge of domestic video game licensing, government refuses to reverse its regulatory tightening.
released a list of 45 newly authorized titles. The
sudden approval presented a departure from China remains the worldwide hub of internet
China’s months-long freeze on gaming licenses. gaming, with a lucrative market catering to over
NetEase alone, one of the country’s largest gaming 666 million users. As such, foreign companies must
companies, saw a stock rise of more than four pay attention to how recent Chinese regulations
percent in early trade on the New York Stock will impact the country’s gaming and technology
Exchange, despite not owning any of the 45 games industries. To gain more clarity on the matter,
approved. Live-streaming companies like Bilibili, we present a complete timeline of the regulatory
Huya, and DouYu also saw similar gains as a direct measures deployed so far, which should also be
result of the restrictions being lifted. indicative of expected policy trends.
The ban imposed last year was an indicator • CHINA’S GAMING REGULATORY
of the government’s discontent with gaming ENVIRONMENT: A COMPLETE TIMELINE
content and the damaging impact of video gaming
addiction on young people’s health. Now, after To understand the current situation in the Chinese
months of headwinds from regulatory tightening gaming market, we need to look back at some
in China across the technology sector, the recent recent developments.
approval implies a more positive approach can be
expected from officials toward the gaming business. ・The backstory
However, there are just a handful of Chinese The 13th National People’s Congress held in
companies, including Baidu, XD.com, Lilith Games, March 2018 gave rise to a new regulatory body,
and 37Games, behind the creation of the 45 newly- the National Press and Publication Administration
approved games – and they account for less than (NPPA), which became responsible for regulating
half of the 87 titles granted last July. This data
3 AMCHAM SOUTH CHINA
China Resumes License
Approval: What’s Next for its
By Giulia Interesse, China Briefing, Dezan Shira & Associates
As China resumes issuing gaming license approval, its regulatory
control has not loosened on the gaming industry. We comment on
recent developments and anticipate future trends.
On April 11, 2022, China’s National Press and reflects an undeniable truth: tough times continue
Publication Administration (NPPA), the body to be in store for China’s gaming companies as the
in charge of domestic video game licensing, government refuses to reverse its regulatory tightening.
released a list of 45 newly authorized titles. The
sudden approval presented a departure from China remains the worldwide hub of internet
China’s months-long freeze on gaming licenses. gaming, with a lucrative market catering to over
NetEase alone, one of the country’s largest gaming 666 million users. As such, foreign companies must
companies, saw a stock rise of more than four pay attention to how recent Chinese regulations
percent in early trade on the New York Stock will impact the country’s gaming and technology
Exchange, despite not owning any of the 45 games industries. To gain more clarity on the matter,
approved. Live-streaming companies like Bilibili, we present a complete timeline of the regulatory
Huya, and DouYu also saw similar gains as a direct measures deployed so far, which should also be
result of the restrictions being lifted. indicative of expected policy trends.
The ban imposed last year was an indicator • CHINA’S GAMING REGULATORY
of the government’s discontent with gaming ENVIRONMENT: A COMPLETE TIMELINE
content and the damaging impact of video gaming
addiction on young people’s health. Now, after To understand the current situation in the Chinese
months of headwinds from regulatory tightening gaming market, we need to look back at some
in China across the technology sector, the recent recent developments.
approval implies a more positive approach can be
expected from officials toward the gaming business. ・The backstory
However, there are just a handful of Chinese The 13th National People’s Congress held in
companies, including Baidu, XD.com, Lilith Games, March 2018 gave rise to a new regulatory body,
and 37Games, behind the creation of the 45 newly- the National Press and Publication Administration
approved games – and they account for less than (NPPA), which became responsible for regulating
half of the 87 titles granted last July. This data
3 AMCHAM SOUTH CHINA
