China Withdraws Proposed Monetization Restrictions from Government Website

China appears to have reevaluated its contentious proposed rules targeting monetization and player engagement strategies. The draft proposals, initially published on the National Press and Publication Administration's website in December, have been taken down. These proposed regulations had included restrictions on common gaming practices, such as daily login rewards and incentives for repeat or first-time spenders. Following the removal of the draft on Tuesday, share prices for major Chinese gaming firms like Tencent and NetEase have seen a significant increase, suggesting a possible reversal of the contentious measures. The initial announcement of the proposed regulations had led to a sharp decline in stock prices, which reportedly contributed to the dismissal of a high-ranking official from the Communist Party's Publicity Department. Over the past few years, the Chinese government has been implementing stricter regulations on the gaming industry, including limits on playtime for minors and stricter guidelines for depictions of religion and gender. Additionally, the NPPA had imposed two nine-month freezes on issuing publishing licenses for new video games, although the situation seems to be improving with more games being approved in 2023 than in the preceding two years.