Shanghai Introduces New Gaming Policy, A Potential Game-Changer for Foreign Developers

Mingzhen Li, the founder and CEO of Playful Digital, a company that specializes in providing market entry strategies for international gaming titles in China, has highlighted the significance of a new policy introduced by the Shanghai government. This policy has the potential to revolutionize the way foreign developers access the Chinese gaming market, which has historically been marked by uncertainty, lengthy processes, and stringent regulations. The Shanghai government has announced a series of initiatives aimed at supporting the software and digital content industries. A key aspect of this policy is a three-year pilot program that enables foreign games developed in Shanghai to be treated as domestic games when applying for licenses. This could be a major boon for international studios with teams based in Shanghai, as it may allow them to bypass some of the most significant regulatory hurdles in the world's largest gaming market. To comprehend the implications of this policy, it is essential to understand how game publishing operates in China. Every game, regardless of whether it is a mobile, PC, or console game, requires an ISBN, which is a publishing license, before it can be officially launched in the country. Without an ISBN, games cannot be released on Chinese platforms, and developers are unable to monetize their products. The current system has been a significant obstacle for foreign developers, with approval times often being slow and unpredictable. Some games have been waiting for months or even years, leading many studios to abandon their attempts to enter the market. While PC games can sometimes circumvent this issue by releasing on Steam's international platform, which Chinese players can still access, mobile games are not so fortunate. Without an ISBN, mobile games cannot be listed on the iOS China App Store or any local Android stores, making it impossible for developers to reach players through legitimate channels. The pilot program, which will run from July 2025 to June 2028, is part of a broader initiative by the city of Shanghai to expand its digital content industry. By encouraging foreign developers to establish teams in Shanghai, the city is offering a unique incentive: games developed locally will be treated as domestic games when applying for licenses. The current state of affairs is telling: in 2024, China approved 1,306 games, but only 110 of these were foreign titles, accounting for less than 9% of the total. In 2025, 757 domestic games have received license approval, compared to just 55 international titles. Foreign games are subject to a more complicated and slower process, with stricter content checks and a smaller quota of licenses. However, this policy could enable foreign studios to sidestep some of the bureaucratic red tape, provided their games are developed locally in Shanghai. Major companies such as Riot Games, Ubisoft, Supercell, EA, and 2K already have teams based in Shanghai. This policy provides them with a new competitive edge and could transform Shanghai into not only a hub for game development but also a vital gateway to the Chinese market. In the short term, the policy may accelerate localization, approval, and launch for international titles in China. Studios that were previously hesitant to enter the market may now perceive a better chance of success. In the long term, this policy could potentially alter how publishers approach game development. With rising costs and market saturation in Western markets, Shanghai, with its growing talent pool and more open policy, may become a more attractive option for developing games from scratch, rather than simply porting them. At the national level, there are indications of progress. Licensing approvals are gaining momentum, and Shanghai's move suggests a more open and practical attitude towards collaborating with foreign developers. While the details of the policy are crucial, one thing is clear: this is the most promising development for foreign developers in China in years, and the Chinese gaming market is gradually becoming more accessible. If your studio already has a team in Shanghai, now may be the ideal time to secure a license and launch your game, setting up local servers, publishing on local platforms, and unlocking new business opportunities. If you are still exploring the market, there is still ample room for growth through PC platforms, even without a license. You can launch on Steam and initiate marketing campaigns on Chinese social media platforms, which can still foster strong engagement with local players. However, if you are a mobile game developer seeking a faster route through the licensing process, Shanghai may offer the most promising path forward.