In a move shrouded in ambiguity, China has removed an official overseeing its press and publications regulator. This comes days after proposed video game regulations sent shockwaves through the industry. Feng Shixin, head of the publishing unit at the Communist Party’s Publicity Department, was ousted from his position last week, according to five anonymous sources briefed on the matter.
As reported by Reuters, the Chinese government has yet to officially announce Feng’s departure. Still, sources speculate his removal is linked to the National Press and Publication Administration’s (NPPA) proposed rules. These measures, unveiled in December, aimed to restrict spending and rewards tied to video games. They also triggered an immediate plunge in major gaming stocks. Tencent’s market value plummeted by nearly $80 billion amid investor fears of another harsh crackdown.
Feng, who previously represented China at events discussing video game regulation, played a key role in policy areas like game approvals and age verification requirements. However, with the NPPA’s latest proposals sparking turmoil, his fate seems tied to the controversial rules.
Beijing’s regulatory tightening across various sectors, including technology and property, reached the gaming industry in 2021. Strict playtime limits for minors and an eight-month suspension of new game approvals marked a dramatic shift, leading to China’s gaming industry’s worst year on record in 2022. Despite the initial blow, the market bounced back in 2023, with domestic revenue rising 14%.
The NPPA’s initial hardline stance on the December proposals was met with strong public pushback. The agency softened its tone five days after the announcement, pledging to refine the regulations by “earnestly studying” public feedback. This shift suggests a potential course correction in response to industry anxieties and economic concerns.
Removing an official is a big deal, especially after Tencent was hurt. Tencent also has stock in many studios in the US, so their getting hurt can damage the industry as a whole. We’re hoping things get better, but what affects China may end up doing some damage here.
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