China relaxes video gaming rules, as Guangdong allows testing of pre-licensed titles

Video gaming firms on the mainland must obtain a licence from the NPPA to publish new titles – covering products created for smartphones, gaming consoles and personal computers – before these are released in the market.

This process takes some time and the regulator does not provide advance notice of approved titles.

For many developers, the Guangdong-specific rule would provide relief from the mainland’s stringent licensing regime for video games, according to lawyers and developers.

“In practice, some games that do not monetise in-app purchases have faced administrative penalties [for operating without a licence],” Shao Shiwei, a senior lawyer at Shanghai Man Kun Law Firm, said in a recent WeChat post.

“At the same time, many games that do not have a licence have been released online without any problems,” Shao said. “This is really a headache for game developers.”

As such, many game developers see the rigid licensing process as a grey area in terms of whether they should test a new title with gamers before obtaining a licence or simply wait for the regulator’s approval.

“With the new rule, I’m quite relieved as I know an NPPA licence is not a must,” Qin said.

Guangdong’s video gaming industry revenue grew 15.8 per cent year on year to 245.08 billion yuan (US$33.70 billion) in 2023, accounting for 80.9 per cent of the sector’s overall domestic sales, according to data from the provincial trade group.