China bans foreign investment in online games industry
by Alexander Sliwinski 
{ Oct 14th 2009 at 3:00AM }
To keep things even more in-house, the order also forbids foreign companies from influencing Chinese gaming firms through technology or other support agreements. The GAPP estimates the Chinese online market is worth about $4 billion.
Reader Comments (Page 1 of 1)
Ryoga Vee @ Oct 14th 2009 3:09AM
Hmmm.. I wonder how that will effect a large portion of Free to Play publishers. see that a number of the games that we port over are from china.
blitzkrieg @ Oct 14th 2009 4:19AM
The Chinese government is going to invest in their online games industry. That's the reason for the ban.
The game is called "MMMORPG" - Mao's MMORPG. You level up everytime you kill a protester in Tienanmen square.
Stevetrop @ Oct 14th 2009 12:56PM
This is still far from the glory days in Soviet Russia.
In Soviet Russia you do not invest in online games, Online games invest in you.
21centuryboy @ Oct 14th 2009 3:12AM
fucking china. its gonna destroy us all
THE WICKER MAN (BWF) (GT: Dalek Prime) @ Oct 14th 2009 4:12AM
Glorious peoples republic respects and loves you! Throw away the shackles of capitalist imperialism! There can be no victory! Anchorage will fall! Join the peoples republic!
Breakerchase @ Oct 14th 2009 3:24AM
Holy jpeg artifacts!
xsfx @ Oct 14th 2009 3:18AM
They just see games in general as a threat to the Motherland's productivity, and they're right; I still can't convince myself to get a job. It's not my fault the market is saturated with awesome games.
Aurailious @ Oct 14th 2009 3:39AM
For example, games like EVE will not be able to operate in China?
jyffrank @ Oct 14th 2009 3:53AM
sigh, well done Reuters and Joystiq, for digging out this 3-month old piece of "news".
first off, since im chinese, i did search the source but sorry guys but didnt find any English version. http://www.techweb.com.cn/news/2009-07-22/419194.shtml
but through it in babel fish, or even if u dont, u should recognise the news is dated back in 22nd July.
So no, now all foreigners cannot RUN a their MMOs alone or co-op in China, but they can still co-DEVELOP ones with Chinese partners (well done for not mentioning this later part, btw).
so games like EVE and Wow can still exist within our digital great wall, but they have to be middle-handed by a Chinese company, e.g. NetEase/Blizzard relationship regarding Wow.
I know it sucks in some way, but shit happens...
THE WICKER MAN (BWF) (GT: Dalek Prime) @ Oct 14th 2009 4:13AM
In your home land freedom plays you!
why not the LS2LS7? @ Oct 14th 2009 4:20AM
It says no joint ventures. So no Shanghai GMs or Foxconn's for this market. Instead foreigners have to turn over complete control and most of the profits (since they have no choice, they must work with a partner, no partner is going to offer a good deal, knowing they have MMO operators cornered).
This is completely unacceptable. It's ridiculous that the US opens up its markets to the Chinese (allowing chicken imports just in the last week) but the Chinese lock out all foreign ownership and now joint ventures too.
Screw 'em.
Aurailious @ Oct 14th 2009 4:24AM
I have some serious beef with China, actually . . . no. Just their government, communism sucks.
The people on the other hand are pretty awesome. Culture is something new and different, not something we are taught in American schools too much. Just Rome and Europe origins. And of course, food. Delicious food.
jyffrank @ Oct 14th 2009 4:36AM
@why not the LS3LS7?
yeah it is unfair. banning foreign company = less better games. GAPP is banning too much stuff for a long time, they are actually we chinese gamers' biggest enemy now.
at this point im totally with u guys.
as for those political bullshits up there, lets just not start another meaningless fight, shall we?
ybfelix @ Oct 14th 2009 4:52AM
Actually if your game is influential enough(say, WoW). you can still get a reasonable proportion in profit, the Chinese side of joint ops can't afford to lose such a big contract, too.
If you are not big enough, then don't brother, not because of this stupid law, it's that Chinese taste in MMOs is heavily Korean-styled (and not the good korean kind), yeah, it's true. WoW got this far simply by very favorable reputations created by Warcraft (and Starcraft) beforehand.
As for Chinese locking out ALL foreign ownership, first, it's not true; and, YOU can try it too if you had a communist government, would you rather like that?
ybfelix @ Oct 14th 2009 4:54AM
*don't bother
Magic @ Oct 14th 2009 4:37AM
There's more to this, check out the news at GP:
http://www.gamepolitics.com/2009/10/12/chinese-agency-foreign-online-game-operators-not-allowed
"Two arms of the Chinese government appear to be battling over whether or not non-Chinese companies can operate online games within the country’s borders.
The General Administration of Press and Publication (GAPP) issued a statement on Friday saying that “foreign companies are not allowed to operate online games in China in any form.” The only problem? Control of China’s online gaming industry was taken away from GAPP last month and given to the Ministry of Culture. Proactive Investors reports that Tuo Zu Hai, a Vice Director in the Ministry of Culture was “startled to hear the news” emanating from GAPP."
Lost Question @ Oct 14th 2009 4:49AM
oops i posted the link and for got my comment the comment was going to be "too bad GAPP dosnt controll china's online gaming industry since it falls under the controll of the ministry of culture"
rashers @ Oct 14th 2009 5:33AM
Would this not be a breach of WTO membership conditions?
Optimaximal @ Oct 14th 2009 5:53AM
Does this mean Evony will go bust?
Victor @ Oct 14th 2009 8:23AM
Globalization is so ironic!
Scott @ Oct 14th 2009 11:10AM
Well that's pretty crappy of them. I think we should ban Chinese investment in the USA. Oh wait, that means our government will be bankrupt.
I guess as long as I can still invest in fried dumplings, I should count my blessings.
TrojanGuy @ Oct 14th 2009 11:21AM
So China owns half of the US, but we're not allowed to invest in anything in China. Sounds fair...
Charlie_Six @ Oct 14th 2009 12:13PM
I had $500 invested in Chinese MMO company PWRD (Perfect World). When this story broke, my stock dropped by about $50. So I sold it, assuming it would drop further. But as of right now, the stock is going UP, not down. Furthemore, I'm an American, and I can still buy/sell stock in PWRD. So it appears foreign individuals can continue to buy stock in Chinese MMO companies.
shredhead @ Oct 14th 2009 12:18PM
LIBERTY PRIME IS ONLINE
ALL SYSTEMS NOMINAL
WEAPONS: HOT
MISSION: THE DESTRUCTION OF ANY AND ALL CHINESE COMMUNISTS
Josh @ Oct 15th 2009 4:25PM
Hahahhahaahahahaha, China.
Au @ Oct 17th 2009 2:49AM
So the Chinese government are blocking foreign investment to support an online market that caters to the gamers that they themselves restrict the play hours of despite violating basic human rights?
Do I have to be Chinese to make sense of this?