China bans foreign investment in online game industry

By on October 12, 2009, 2:13 PM
In an attempt to strengthen its grip on virtual reality, China is prohibiting foreigners from investing in the country's online video game industry.

The General Administration of Press and Publication (GAPP) and the National Copyright Administration pushed out a directive on Saturday that disallow foreign bodies from investing in China's online game market through joint ventures, wholly owned enterprises, and cooperatives. China hopes the move will prevent foreign firms from indirectly influencing Chinese gaming bodies through agreements or tech support.

"The new rule is a good beginning in approving the online games in accordance with laws and will be conducive to the regulation of online gaming businesses," said Kou Xiaowei of GAPP. The latest policy follows China's recent broader campaign to shutdown unapproved titles with "unhealthy" content operating in the country. That effort has already halted some 45 online games, and the list will continue to grow.

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