China: New Online Game Regulations Aim to Tidy Up China's Online Game Sector

Last Updated: 7 July 2010
Article by Nicolas Groffman and Erik Leyssens

China's two online game regulators - the Ministry of Culture and the General Administration of Press and Publications (GAPP) - have been struggling for control of the online game sector. The two regulators separately announced that they were drafting new rules governing the sector, but the Ministry of Culture seems to have beaten GAPP to the punch by releasing the Provisional Regulations for the Administration of Online Games on 3 June 2010 ("Online Game Regulations").

When the Ministry of Culture initially gained the upper hand following a State Council decree that appointed the Ministry of Culture as the supreme regulator of the sector, GAPP hit back with a notice of its own requiring all online operators to get an operating licence from GAPP as well as three certificates: the copyright approval certificate, the game examination certificate and the online game publication certificate. GAPP also banned all foreign investment in online gaming, a ban that remains in effect to this day.

The rivalry between the two authorities came to a head in 2009 when the most popular internet game in China, the World of Warcraft, shifted operators and went through an upgrade. Both agencies claimed to have final approval powers and their conflict resulted in the game being ordered to go off-line for five months.

The Online Game Regulations consolidate the Ministry of Culture's scattered regulations on online games and virtual money operations and introduce a few new measures, most notably the requirement that online gamers register with their real names.

Market entry for operators

The Online Game Regulations that will be implemented from 1 August confirm that an online game operator must have registered capital of at least RMB 10 million and obtain an internet culture operating licence from the Ministry of Culture.

Game imports and approvals

Only an online game operator in China which holds the exclusive licence to an online game may import that game into China. While the contents of all imported games must be approved by the Ministry of Culture before the game may be played online, domestic games solely need to be filed for the record with the Ministry of Culture within 30 days after the game is placed online. The Online Game Regulations provide that if online game publications have been approved by other relevant departments (read: GAPP), then the Ministry of Culture will not conduct any further approval and the game may be uploaded on the internet.

Operational rules

  • Players are required to register with their real name and provide their identification documentation. This move has been criticised in China, partly because players want to ensure anonymity and some freedom of speech, but mainly because they fear incompetent or bad-faith management of the information which will lead to commercial use of their identity.
  • It is prohibited for online games to force confrontations between players.
  • Pop-up advertisements that lure players to buy game products with real or virtual currency are also prohibited.
  • The Online Game Regulations restate the types of content that are prohibited in online games. This is the usual list of politically and culturally sensitive content that is applicable to all web content in China. Online game operators must establish a self-censorship mechanism and have a dedicated department and personnel for this purpose.

Virtual money

A year ago, the Ministry of Culture published jointly with the Ministry of Commerce China's first regulations on virtual currency transactions[1]. Virtual currency may only be used to purchase services and products provided by the online service provider that issues the currency and not for the purchase of real-world goods or to trade goods and services of other entities. The purchase records of online gamers must be kept for at least 180 days from their last purchase.

Protection of minors

Virtual currency service providers may not provide virtual currency transaction services to minors. With some reports putting online addiction by China's youth at 14%, it is no surprise that the Online Game Regulations require online game providers to adopt measures to prevent underage gamers becoming addicted to online games by limiting their playing time. Minors must not be exposed to "content that is unsuitable for them".


The Provisional Regulations impose stricter controls on China's online game operators and its 100 million fervent online gamers. It remains to be seen whether the clarity that the Provisional Regulations provide may be blurred when GAPP finally reveals its own regulations governing this sector.


The views set out in this publication are based on our experience as international counsel representing clients in their business activities in China. As is the case for all international law firms licensed in China, we are authorised to provide information concerning the effect of the Chinese legal environment. However, we are not admitted to practice Chinese law and so are unable to issue opinions on matters of Chinese law. The content of this article is intended to provide a general guide to the subject matter.


[1] The Notice on Strengthening the Administration of Virtual Currency in Online Games (summarised in our alert entitled China regulates virtual currency transactions).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.