Chinese regulators said Tuesday that the plan to cut the amount people spend on online video games has sent shares of video game companies tumbling and raised doubts about the government’s efforts to revive China’s slowing economy. seems to have been withdrawn.
The draft rules were previously posted for public comment on the website of the National Press and Publication Authority, the agency overseeing the proposal, before disappearing from that website. Instead, the page displayed an error.
The agency, which issues licenses to game publishers and regulates the industry, did not issue a notice of withdrawal. An employee who answered the phone said he was unsure about the circumstances of the move.
Despite there being no confirmation that the proposal had been rejected, the shares of China’s two biggest video game companies soared on Tuesday, outpacing the broader market with Tencent up 3.7% and NetEase up 6%.
The wide-ranging draft rules, first announced late last month, would impose spending limits on video game platforms and prevent fans from tipping video game live streamers, a common way to support their favorite online influencers. The content was prohibited for minors. It would also ban companies from offering rewards for frequent logins and broadly ban content that could jeopardize national security.
Officials said the aim was to protect minors and improve regulation of the gaming industry.
The plan came as a surprise to the industry, with investors dumping tens of billions of dollars in stake in Chinese gaming companies.
The move comes as the government seeks to lure back domestic and foreign investors amid an economic downturn and concerns that Beijing is more preoccupied with tightening control over the economy and daily life than promoting growth. , this sale came out.
Many investors are looking forward to 2021’s sudden crackdown on China’s high-tech industry, which wiped out trillions of dollars in value from some of China’s most prominent private companies, as well as the country’s three-year tough coronavirus pandemic. I’m still afraid of regulations.
Gaming in particular has been a target in the past, with previous rules banning online gaming on children and teens’ school days and limiting screen time on other days. was.
Within days of last month’s stock market crash, government officials already appear to be having second thoughts. The press and publishing administration issued a statement saying it wants to promote the “healthy development” of the gaming industry and is “listening to opinions more comprehensively.”
The public comment period for the proposed rule ended on Monday. However, many other draft regulations remain online past the public comment period.
Relations between the Chinese government and the gaming industry have been fraught for years. China’s ruling Communist Party has repeatedly expressed concern about online gaming addiction, with state media likening certain popular games to “poison” that can corrupt young people and distract soldiers from their missions. Many parents have also expressed support for stricter regulations.
But Chinese tech companies like Tencent are also the cornerstone of the global gaming industry, with Chinese gamers leading the world in number and the amount of money they spend, according to Goldman Sachs. The country is embracing competitive gaming, building esports stadiums and offering university majors on the subject.
Last year, esports became a medal sport for the first time when the Asian Games were held in the eastern city of Hangzhou. China won the most gold medals.
Joy Don Contributed to research.