First, China blocks international websites such as Google.com, Twitter, Facebook and YouTube. Now, the Chinese authorities ban any foreign investments, tech partnerships in its ever-growing and lucrative online games industry. What’s going on in one of the world’s largest economies?
In an effort to to strengthen its grip on virtual reality, China is prohibiting foreigners to pump in money into the country’s online games industry. China’s video game industry regulator the General Administration of Press and Publication (GAPP) and copyright watchdog issued a circular on Saturday banning foreign investment in domestic online gaming operations through joint ventures, wholly owned enterprises and cooperatives. This applies to both organizations and individuals who are trying to get a pie of a money-making company like Tencent.
“The new rule is a good beginning in approving the online games in accordance with laws and will be conducive to the regulation of online gaming businesses,” said Kou Xiaowei, vice director of GAPP’s technological and digital department.
There are quite a number of reasons why the Chinese authorities introduce a policy to restrict any foreign investments into its online games industry. They are worried that foreigners will influence the Chinese online gaming companies (eg. unhealthy or inappropriate contents). Besides that, they are also trying to prevent the outside world from copying its online gaming model – micro-transactions, virtual goods and subscriptions, which proved to be very successful.
Of course, these measures of denying foreign investment in online gaming industry would negatively influence its development abroad. This is extremely crucial if small-scale local gaming companies wants to reach out to the Western world. Another crucial issue would be the vast gap in technology between China and first world countries. Without foreign investments, it’s relatively tough for China’s online gaming industry to be on par with the United States or other developed countries.
The Chinese government seems to control each and every 338 million Internet users. The top officials claim Google.com contain unhealthy contents, and they block the search engine in order to protect their users. That is just an excuse. If it’s because of pornography, then why governments of other Asian countries like Singapore, Taiwan and Malaysia don’t really care much about this issue. We are all Asians, but why only China?
Well, it’s all because of the fierce competition between China-based websites and International websites. Without blocking Google, Baidu cannot succeed. Without blocking Wikipedia, Hoodong cannot succeed. Without blocking Blogger, Blogcn cannot succeed. Without blocking YouTube, Youku cannot succeed. These huge International Internet Companies do not need to pay taxes to China Government, but the Internet Companies in China do pay taxes. The Chinese government wants to make more money, so and to boost their GDP. In addition, they want to “protect” China websites and hence blocking successful International websites.
Is China over-doing it? Leave your comments below…Thanks!
Read more in this article – 3 Main Reasons Why the Chinese Government Blocks Popular Social Websites