China Removes Government Official Amid Proposed Rules on Video Games
In a recent development, China has removed Feng Shixin, an official at a government body overseeing its press and publications regulator. This action comes just days after Chinese gaming stocks took a hit due to proposed rules aimed at curbing spending on video games. Feng Shixin was reportedly removed from his position as head of the publishing unit of the Communist Party’s Publicity Department. This department oversees the National Press and Publication Administration (NPPA), which is responsible for regulating China’s vast video games sector.
While the State Council Information Office, which handles media queries on behalf of the Chinese government, has not responded to requests for comment, sources indicate that Feng’s removal is directly linked to the rules announced by the NPPA last month. These rules caused stocks in the world’s largest video games sector, including industry giant Tencent, to plummet.
The NPPA’s proposed measures aim to curb spending on video games and discourage the use of rewards that encourage excessive playing. However, these measures have sparked fears that the authorities are once again cracking down heavily on the sector. Consequently, China’s two biggest gaming companies saw almost $80 billion wiped off their market value.
In response to the concerns raised, the NPPA has adopted a more conciliatory tone, stating its intention to improve the rules by considering public feedback. This move seeks to address the risks posed by potential regulatory changes and restore investor confidence, particularly as Beijing has been actively promoting private sector investment to stimulate the country’s slowing economy.
It is worth noting that China implemented a significant crackdown on its video gaming sector in 2021, introducing strict playtime limits for individuals under 18 and suspending approvals for new video games for nearly eight months, citing concerns about gaming addiction. This extensive regulatory tightening affected several sectors, including technology and property, leading to 2022 being the most challenging year on record for the Chinese gaming industry.
Despite these setbacks, China’s video game market experienced a resurgence in 2022, with domestic revenue rising by 14% to reach 303 billion yuan ($42.47 billion). This growth indicates the resilience and potential of the industry despite the regulatory challenges it faces.
The removal of Feng Shixin and the proposed rules by the NPPA highlight the Chinese government’s continued focus on regulating the video game sector. It remains to be seen how these measures will shape the industry and whether they will ultimately strike a balance between addressing concerns and fostering growth. Industry stakeholders and investors will be closely monitoring future developments to determine the impact on China’s video game market.
In conclusion, China’s move to remove Feng Shixin amidst proposed rules on video games has created significant uncertainty in the industry. With ongoing regulatory efforts and the potential for further changes, the Chinese video game market faces a challenging landscape. The outcome of these developments will have far-reaching implications for the sector and its key players.
