China is known to be very strict with its video game policies. But for years, the country has left a loophole open for gamers to access unauthorized video games overseas.
Now, China is going to close that loophole.
China to Be More Strict with Overseas Gaming
According to TechCrunch, a lot of foreign titles lack a Chinese publishing partner like Tencent to assist them in getting the government-issued license needed to operate in the country. Hence, players usually rely on an accelerator to reduce the delays of overseas-hosted games.
On Apr. 13, Tencent, the world's largest online gaming company, announced it would terminate its gaming booster that allows users to play foreign games.
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Even though it is not explicitly said in the notice, some gamers see the decision as the authorities' stepping up to limit access to overseas gameplay. Tencent's rival NetEase also runs the same service, still operating.
The other signal of enhanced control came on Apr. 15 when China's National Radio and Television Administration, the regulator granting video games licenses that they need to operate in the country, said platforms would be prohibited from livestreaming games that the government has not authorized.
Platforms should get approval before broadcasting overseas games or matches, including business accounts and individual accounts.
This will shrink the number of games that China's livestreaming hosts can discuss, putting a lot of them out of business as China has slowed down the approval process for new games over the past few years.
A lot of foreign titles may not be officially available in China, but a massive market exists where commentary and matches of blockbuster international games are featured on the country's live broadcasting platforms like Douyu and Huya.
The Chinese government has issued the same warnings in the past, according to Reuters.
In 2016, the Ministry of Culture and Tourism, which partakes in gaming regulations but does not issue licenses, mentioned in a blanket regulation for internet performance that platforms should not include commentary on unlicensed games, less strong wording than the latest document.
China's Strict Gaming Laws
In November 2021, China's video gaming market went through a rollercoaster ride due to the new gaming laws.
SCMP reported that the stocks took a massive dive after a local editorial lambasted the internet games as spiritual opium.
Beijing placed more restrictions on the amount of time that the children can spend playing online video games. The children can only play three hours per week.
The restriction was a challenge to gaming companies such as Tencent Holdings and NetEase.
Since then, things have calmed down a bit. It turns out that many children are still finding ways around the strict gaming laws, often with help from their parents, and China's industry behemoths are still raking in tons of cash on the popularity of their games.
Tencent got a release in 2021 for the mobile version of the famous game "League of Legends," but the game licenses were frozen after July 2021.
Video games have become more critical to the country's economy, despite the hostility from the Chinese regulators.
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This article is owned by Tech Times
Written by Sophie Webster
