BEIJING. Wednesday, January 17– On Friday, December 22, China’s introduction to new rules targeting in-game spending and rewards, aims to curb video game addiction and promote healthy habits among young people. 1
About 10 out of the 64 articles include updated or new guidelines, marking the most significant regulatory alterations since additional restrictions were imposed on Chinese youth gamers in September 2021. 2
The draft is currently in a 30-day review period, allowing stakeholders to offer feedback and propose changes.
The regulations, announced by the National Press and Publication Administration (NPPA), mark the latest clampdown on the world’s largest gaming market, already burdened by strict playtime limits for minors and a temporary freeze on new game approvals in 2021.
The new measures introduce several key restrictions:
Ban on Reward Mechanisms: Online games can no longer offer rewards for daily logins, initial purchases, or consecutive spending, effectively eliminating common tactics to drive player engagement and monetization.
In-Game Wallet Limits: Companies must set caps on how much players can top up their virtual wallets, aiming to prevent excessive spending, particularly by minors.
Speculation and Auction Ban: Auctioning and speculation involving virtual gaming items will be prohibited, potentially curtailing a lucrative secondary market.
Minors’ Protection: Measures to verify age and restrict access to age-inappropriate games will be further tightened.
Following the announcement, shares of major companies like Tencent and NetEase experienced significant drops, according to various media.
Yet, after the recent release of the draft regulations, there was subsequent approval for 40 imported games and 105 domestic games.
This marks the largest number of approvals in a single batch for both imported and domestic games in 2023, signaling a positive indication that the government is persisting in granting authorization for new titles.
- NPPA: https://www.nppa.gov.cn/xxfb/tzgs/202312/t20231221_823187.html[↩]
- Niko Partners: https://nikopartners.com/new-draft-gaming-regulations-in-china-the-story-so-far/[↩]
