China softens its position on the Olympics after suffering heavy losses. China softens its position on the Olympics after suffering heavy losses
China approved 105 domestic gambling licenses on Monday, the latest sign that Beijing is softening its stance after tight restrictions on the industry led to an $80 billion loss last week.
The games include those produced by Tencent and NetEase, China's two main game makers, both of which are affected by Beijing's new regulations.
The industry association said in a WeChat message published by the official Xinhua News Agency that Monday's approval showed that Chinese authorities support the development of the game.
China has raised fears of a new technology crackdown after the State Press and Publication Administration on Friday announced new rules aimed at curbing game development, including unspecified limits on game spending for adult players.
Other restrictions include blocking rewards for frequent logins, enforcing duels between players, and even blocking content that violates national security.
After the market value of Tencent and NetEase fell by tens of billions of dollars on Friday, the State Press and Publication Administration announced the approval of 40 imported games, including games from two companies.
This decision will not help restore investor confidence. Several analysts said shortly after the new restrictions took effect that Tencent and NetEase were unlikely to be significantly affected, but that did not prevent the stock prices of those companies from falling.
The National Administration of Press and Publication said on Saturday that it was listening to the opinions of stakeholders such as companies and actors to improve the rules.
The tough restrictions, which caught industry players and investors by surprise, are reminiscent of the crackdown on the technology industry in 2021.
This year, various authorities suddenly imposed restrictions on sectors from e-commerce to entertainment, reined in Jack Ma-backed Ant and Alibaba Group, and declared illegal profits in the online education sector.
Recent events reflect the government's desire to provide a large and diverse gaming scene with innovative, high-quality content rather than paid games.
China prefers publishers to make money through fair practices and product innovation rather than deepening monetization strategies.