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

Mingzhen Li, founder and CEO of Playful Digital, a company specializing in market entry strategies for international gaming titles in China, sheds light on the potential opportunities presented by Shanghai's new policy. For years, foreign developers have faced significant challenges when attempting to break into the Chinese gaming market, including lengthy processes and stringent regulations. However, a recent announcement by the Shanghai government may have provided a solution. As part of its efforts to support the software and digital content industries, the city has introduced a three-year pilot program that allows foreign games developed in Shanghai to be treated as domestic games when applying for licenses. This development could be a significant boon for international studios with teams in Shanghai, enabling them to avoid some of the toughest regulatory hurdles in the world's largest gaming market. To grasp the significance of this policy, it is essential to understand the current state of game publishing in China. Every game, regardless of platform, requires a publishing license, known as an ISBN, before it can be officially released in the country. Without an ISBN, games cannot be released on Chinese platforms, and developers are unable to monetize their products. The ISBN system has been a major obstacle for foreign developers, with approval times often being slow and unpredictable. Some games have waited 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 is accessible to Chinese players, mobile games are not so fortunate. Without an ISBN, mobile games cannot be listed on the iOS China App Store or local Android stores, leaving no legal means of reaching players. The pilot program, scheduled to run from July 2025 to June 2028, is part of Shanghai's broader plan to grow its digital content industry. By encouraging foreign developers to establish teams in the city, the program offers a unique opportunity for games developed locally to be treated like domestic titles when applying for a license. The current statistics are telling: in 2024, China approved 1,306 games, but only 110 were foreign titles, accounting for less than 9%. 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, whereas domestic games generally receive faster decisions and benefit from a larger quota of licenses. This policy could enable foreign studios to bypass the additional layer of bureaucracy, provided their games are developed locally in Shanghai. Major companies like Riot Games, Ubisoft, Supercell, EA, and 2K already have teams in the city, and this policy could give them a significant advantage, making Shanghai an attractive gateway to the Chinese market. In the short term, the policy could accelerate localization, approval, and launch for international titles in China, potentially enticing studios that were previously hesitant to enter the market. In the long term, it may even influence how publishers approach game development, with Shanghai's growing talent pool and more open policy making it an appealing option for developing games from scratch, rather than just porting them. There are also signs of progress at the national level, with licensing approvals gaining momentum, and Shanghai's move suggesting a more open and practical attitude towards collaborating with foreign developers. While the details of the policy's implementation are crucial, one thing is clear: this is the most encouraging development for foreign developers in China in years, and the Chinese gaming market is gradually opening up. For studios with existing teams in Shanghai, now may be the ideal time to obtain a license and launch their game, setting up local servers, publishing on local platforms, and unlocking new business opportunities. For those still exploring the market, there is still room for growth through PC platforms, even without a license, by launching on Steam and building a brand and community through marketing campaigns on Chinese social media platforms. However, for mobile game developers seeking a faster route through the licensing process, Shanghai may be the most promising path forward.