China lifts ban on foreign video games, allows release of 45 titles with Tencent earning multiple licenses

China previously banned many foreign video games in the country amid the crackdown on the gaming industry this year. Chinese online game regulators suspended publishing licenses which affected local distributors such as NetEase Inc. and Tencent Holdings.

As per Reuters, China is now allowing foreign video games again after the regulators granted publishing licenses to a total of 45 games, and this was confirmed on Wednesday this week. This move has lifted the ban on foreign games, which has negatively affected the country’s gaming industry for months.

Based on the reports, the Chinese government’s National Press and Publication Administration will start allowing the publishing of online games again, including many popular titles such as Nintendo’s "Pokémon Unite" and CD Projekt’s "Gwent: The Witcher Card Game."

The officials also updated its list of approved local games and this month, 84 titles were added to the record. It was reported that since April, the regulators started granting game licenses to games created by local companies again.

The latest approval for foreign games is being considered as the last regulatory curb to be removed. Likewise, this marks the end of Beijing’s clampdown on the video games business after cancelling approvals and taking the games down.

It was noted that in China, games need permission from regulators before they can be released, while in most countries, there is no such rule. In any case, the crackdown was a big blow to gaming firms in the country as their revenue plummeted after the ban on imported games.

South China Morning Post reported that the approvals come more than a month after a Chinese gaming industry association announced its triumph in reducing video game addiction among minors which was said to be one of the main reasons for the market crackdown.

Meanwhile, Tencent may be one of the firms that were granted new licenses for game release but its founder, chairman and chief executive officer, Pony Ma Huateng, warned that the restriction may not really be over yet.

He is still cautious of the regulator’s direction and warned the company’s employees during a meeting that Tencent’s video gaming division will continue to be under a rigid regulatory environment as he believes regulators will keep a tight grip on the new game approvals.

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