This is very disappointing for many foreign investors eyeing the Chinese Online games industry. General Administration of Press and Publication (GAPP) issued a an order on Saturday prohibiting foreign investment in domestic online gaming operations through joint ventures, wholly owned enterprise. GAPP ever goes so far as to prohibit foreign firms from indirectly influencing Chinese gaming firms through agreements or technology support. This is really outrageous but not at all surprising. After all, this is China and the Online gaming market is mushrooming and is estimated to reach value of $3.5-4 billion this year so why not make sure that you're in control & keep the revenues inside China? Thanks to Frank Yu for the hat tip.
October 12, 2009
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