Shanghai Introduces Game-Changing Policy for Foreign Developers

Mingzhen Li, founder and CEO of Playful Digital, a firm specializing in market entry strategies for international gaming titles in China, sheds light on a new policy that could revolutionize the gaming landscape. For years, foreign developers have struggled to break into China's lucrative gaming market due to stringent regulations, lengthy processes, and uncertainty. However, a new policy announced by the Shanghai government in July may finally provide a clearer and faster route for international developers. The policy includes a three-year pilot program that allows foreign games developed in Shanghai to be treated as domestic games when applying for licenses, potentially bypassing some of the toughest regulatory hurdles in the world's largest gaming market. To understand the significance of this policy, it's essential to grasp how game publishing works in China. Every game, regardless of platform, requires an ISBN, or publishing license, to officially launch and monetize in the country. This system has been a major obstacle for foreign developers, with approval times often being slow and unpredictable, leading many studios to abandon their attempts. Currently, PC games can sometimes circumvent this by releasing on Steam's international platform, but mobile games without an ISBN cannot be listed on the iOS China App Store or local Android stores, making it impossible to reach players legally. The Shanghai pilot program, running from July 2025 to June 2028, aims to encourage foreign developers to establish teams in Shanghai, with the incentive of being treated like domestic games during the licensing process. The current statistics are telling: in 2024, China approved 1,306 games, with only 110 being foreign titles, accounting for less than 9%. In 2025, 757 domestic games have received license approval, compared to just 55 international titles. Foreign games undergo a more complicated process with stricter content checks, while domestic games typically receive faster decisions and benefit from a larger quota of licenses. This policy could enable foreign studios to bypass this extra layer of bureaucracy if their games are developed locally in Shanghai. Major companies like Riot Games, Ubisoft, Supercell, EA, and 2K already have teams in Shanghai, and this policy gives them a new advantage, potentially making Shanghai not only a smart location for game development but also a powerful gateway to the Chinese market. In the short term, the policy could accelerate localization, approval, and launch for international titles in China, making it more appealing for studios that were previously hesitant to enter the market. In the long term, it might even influence how publishers plan their game development, with Shanghai's growing talent pool and more open policy potentially becoming a more attractive option for developing games from scratch, rather than just porting them. At the national level, there are signs of progress, with licensing approvals gaining momentum, and Shanghai's move indicating a more open and practical approach to working with foreign developers. While the details of the policy's implementation and interdepartmental collaboration will be crucial in determining its success, one thing is clear: this is the most encouraging policy for foreign developers in China in years, and the Chinese gaming market is gradually opening up. For studios already with a team 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 now offer the most promising path forward.