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.

User Comments: 3

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TomSEA TomSEA, TechSpot Chancellor, said:

(shrugs) It's China - what would one expect?

Route44 Route44, TechSpot Ambassador, said:

Pardon my ignorance but what, if any, current online games are affected by this action that come out of China?

And what 45 possibilities have been halted that we know about?

Guest said:

Well I don't know what 45 games there talking about, but it sounds like they were all China based games. SO likely they were games no of the rest of us have even heard of.

In its own way this could be a good thing, the world gaming industry losses a lot of ability to target china witch lowers there market presence. Which yes Lower potential sales by A LOT don't get me wrong. However at the same time Region demand also heavily effects the content of games or products on the market so as china raises in the market the number of buyers far a weight the buyers in the USA/Canada/UK areas. So in an effect less would be made to target us.

Really I've played a few chicnesses made games.... I'll be sticking to Japan/USA/UK made games targeted to the Japan, US, & UK markets.

It'll be Interesting to see what happens in 5~20 years when/if India ever really gets involved in the Gaming world.

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