JAKARTA - China has banned children under 18 from playing video games for more than three hours a week. This strict social intervention is necessary to stop a developing game addiction. Even the Chinese government once called it a "spiritual opium".
The new rules, published on Monday, August 30, are part of sweeping changes by Beijing to strengthen control over its people and key sectors of its economy. Including technology, education, and property, after years of unbridled growth.
The restrictions, which apply to any device including mobile phones, are a major blow to the global gaming industry that caters to tens of millions of young players in the world's most lucrative markets.
According to state news agency Xinhua, the government restricts children under 18 from playing for one hour a day, 8 p.m. to 9 p.m., only on Fridays, Saturdays, and Sundays. They can also play for an hour, at the same time, on holidays.
Rules from the regulator National Press and Publication Administration (NPPA) coincide with a broader crackdown by Beijing against Chinese tech giants, such as Alibaba Group and Tencent Holdings.
Campaigns to stave off what state media have described as "wild growth" have wiped out tens of billions of dollars from shares traded at home and abroad.
"Youths are the future of our homeland," Xinhua quoted an unnamed NPPA spokesman as saying. "Protecting the physical and mental health of minors is related to the vital interests of the community and is related to fostering the younger generation in the era of rejuvenation of the nation".
Game companies will be barred from providing services to minors of any kind outside of set hours and must ensure they have a real-name verification system in place, said the regulator, which oversees the country's video game market.
Previously, China had limited the period of time for children under 18 to play video games to 1.5 hours on any day and three hours on holidays under 2019 rules.
The new rules quickly became one of the most discussed topics on Weibo, China's version of Twitter. Some users expressed support for the measure while others said they were surprised by how drastic the rules were.
"It's so fierce that I'm literally speechless," said one comment that received more than 700 likes.
Others expressed doubt that the restrictions could be enforced. “They will only use their parents' login, how can they control it?”, ask one.
Zapped game stock
According to analytics firm Newzoo, China's gaming market will generate around US$45.6 billion in revenue by 2021. This number is bigger than gamers in the United States. The Chinese government's crackdown immediately spread throughout the world.
Amsterdam-listed technology investment firm Prosus, which holds a 29 percent stake in Chinese social media and video game group Tencent, fell 1.45 percent. European online video game shares Ubisoft and Embracer Group each fell more than 2 percent.
Chinese gaming stocks slumped in pre-market trading in the United States with NetEase falling more than 6 percent and mobile game publisher Bilibili down 3 percent.
According to Chinese state media, about 62.5 percent of Chinese minors frequently play online games and 13.2 percent of underage mobile game users play mobile games for more than two hours a day on weekdays,
Gaming companies have been on edge in recent weeks as state media criticized gaming addiction among young people, signaling a regulatory crackdown.
A state media outlet described online gaming as a "spiritual addiction" this month and cited Tencent's "Honor of Kings" in an article calling for more restrictions on the industry, hitting stakes in the world's largest gaming company by revenue.
Tencent then announced new steps to reduce the time and money kids spend playing games, starting with Honor of Kings. Its president also said he was working with regulators to explore ways in which the total amount of time minors spent playing games could be limited across all titles in the industry.
Regulators NPPA told Xinhua that they will increase the frequency and intensity of inspections for online gaming companies to ensure they implement time limits and anti-addiction systems. It is also said that parents and teachers play a key role in controlling game addiction.
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