Targeting to control online gaming industry China bans foreign investments

Saturday, the China’s General Administration of Press and Publication (GAPP) and copyright watchdog issued a prohibition, banning foreign investment in domestic online gaming operations through joint ventures, wholly owned enterprises and cooperatives.

 That was done in an effort to enhance control over remunerative virtual worlds of national online games industry.

 The new prohibition also bans foreign companies to indirectly influence Chinese gaming firms through agreements or technology support.

 China's online gaming market claims to be one of the world's fastest growing, with sales expected to rise by 30 to 50% this year to 24 billion yuan or 27 billion yuan ($3.5-4 billion), according to GAPP outlook.

 NetEase.com, the Chinese game developer, earlier this year got the license to operate within China Activision Blizzard's blockbuster game, World of Warcraft.