The new rules, published on Monday, are part of a major
shift by Beijing to strengthen control over its society and key sectors of its
economy, including tech, education, and property, after years of runaway
growth.
The restrictions, which apply to any devices including
phones, are a body blow to a global gaming industry that caters to tens of
millions of young players in the world's most lucrative market.
They limit under-18s to playing for one hour a day - 8pm to
9pm - on only Fridays, Saturdays, and Sundays, according to the Xinhua state
news agency. They can also play for an hour, at the same time, on public
holidays.
The rules from the National Press and Publication
Administration (NPPA) regulator coincide with a broader clampdown by Beijing
against China's tech giants, such as Alibaba Group and Tencent Holdings.
The campaign to prevent what state media has described as
the "savage growth" of some companies has wiped tens of billions of
dollars off shares traded at home and abroad.
"Teenagers are the future of our motherland,"
Xinhua quoted an unnamed NPPA spokesperson as saying. "Protecting the
physical and mental health of minors is related to the people's vital
interests, and relates to the cultivation of the younger generation in the era
of national rejuvenation."
Gaming companies will be barred from providing services to
minors in any form outside the stipulated hours and must ensure they have put
real-name verification systems in place, said the regulator, which oversees the
country's video games market.
Previously, China had limited the length of time under-18s
could play video games to 1.5 hours on any day and three hours on holidays
under 2019 rules.
The new rules swiftly became one of the most discussed
topics on Weibo, China's answer to Twitter. Some users expressed support for
the measures while others said they were surprised at how drastic the rules
were.
"This is so fierce that I'm utterly speechless,"
said one comment that received over 700 likes.
Others expressed doubt that the restrictions could be
enforced. "They will just use their parents' logins, how can they control
it?" asked one.
Gaming shares zapped
The Chinese games market will generate an estimated $45.6
billion of revenue in 2021, ahead of the United States, according to analytics
firm Newzoo.
The crackdown reverberated around the world.
Shares in Amsterdam-listed tech investment company Prosus,
which holds a 29 percent stake in Chinese social media and video games group
Tencent, were down 1.45 percent, while European online video gaming stocks
Ubisoft and Embracer Group each fell over 2 percent.
Shares of Chinese gaming stocks slid in pre-market trading
in the United States with NetEase falling over 6 percent and mobile game
publisher Bilibili dropping 3 percent.
About 62.5 percent of Chinese minors often play games
online, and 13.2 percent of underage mobile game users play mobile games for
more than two hours a day on working days, according to state media.
Gaming companies have been on edge in recent weeks as state
media criticised gaming addiction among young people, signalling a regulatory
crackdown.
A state media outlet described online games as
"spiritual opium" this month and cited Tencent's Honor of Kings in an
article that called for more curbs on the industry, battering shares in the
world's largest gaming firm by revenue.
Tencent later announced new measures to reduce the time and
money children spend on games, starting with Honor of Kings. Its president also
said it was working with regulators to explore ways in which the total amount
of time minors spent on gaming could be capped across all titles in the
industry.
The NPPA regulator told Xinhua it would increase the frequency
and intensity of inspections for online gaming companies to ensure they were
putting in place time limits and anti-addiction systems.
It also said that parents and teachers played key roles in
curbing gaming addiction. © Reuters