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China bans online game investment

by on13 October 2009

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We will do it ourselves


The Glorious
People's Republic of China has decided it does not want foreign cash being injected into its lucrative online games industry.

The Chinese mandarins want to control the virtual worlds of its workers to make sure they are not having subversive thoughts and so the best way to do that is to make sure foreigners do not get in. 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.

Foreign outfits are not allowed to indirectly influence Chinese gaming firms through agreements or technology support either. China's online gaming market is one of the world's fastest growing, with sales expected to rise 30 to 50 percent this year to $3.5-4 billion. Chinese game developer NetEase.com won earlier this year the license to operate within China Activision Blizzard's blockbuster game, World of Warcraft.

However regulators who were concerned about their joint venture for Blizzard to provide technical support to NetEase.
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