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China bans foreign investment in online gaming

Wednesday, 14th October 2009 11:37 GMT By Patrick Garratt

wowchina

China’s banned all foreign investment into its online games industry in an “effort to tighten control over its virtual worlds,” according to Reuters.

According to that piece, “China’s video game industry regulator the General Administration of Press and Publication (GAPP) and copyright watchdog issued a circular on Saturday prohibiting foreign investment in domestic online gaming operations through joint ventures, wholly owned enterprises and cooperatives.”

Nasty. But maybe not so unsurprising when you consider the market will likely grow between 30-50 percent this year to $3.5-4 billion.

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3 Comments

  1. ybfelix

    This is strange.. IIRC GAPP doesn’t actually have administrative power over MMO gaming or trading.(It’s under Ministry of Culture/Commerce)

    And as of now there is effectively no foreign investment in Chinese MMO operating already, it’s hard to compete with deeply entrenched local operators. For example WoW is operated by NetEase

    #1 5 years ago
  2. freedoms_stain

    If anyone tried this in the West it’d be denounced as protectionism.

    #2 5 years ago
  3. edwardfane

    I think that the Chinese government is going to invest in their own online games industry, and that is the main reason for the ban.
    I’ve been searching for documents about investment and I found this site: Yellow documents.

    Edward

    #3 5 years ago

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