Departments including the General Administration of Press and Publication (GAPP) recently released an announcement prohibiting foreign enterprises from investing in or providing online game service in the Chinese mainland through the establishment of wholly-owned, joint venture or cooperative companies. Foreign enterprises are not permitted to indirectly, virtually control or participate in the online game operations of domestic enterprises through the establishment of joint ventures, signing relevant agreements or providing technical support.

The announcement was jointly released by GAPP, the National Copyright Administration and the National Anti-Pornography and Anti-Illegal Publications Office, aiming to further strengthen the examination and approval of online games before they are put into operation, as well as the approval and management of imported online games.

Foreign enterprises are not permitted to control or participate in online game operations by disguised means such as by directly introducing user registration, account management, game card consumption and other information to networked, multi-player game platforms that are actually controlled or owned by foreign companies, the announcement said.

GAPP explicitly pointed out that the review and approval of online games before they are put into operation should be carried out according to two principles. Firstly, enterprises or individual are not permitted to engage in online game operation services if they have not been examined by GAPP for approval before the online game is put into operation, and did not obtain an Internet publication license effective for online game businesses. Secondly, online games that have not been examined by GAPP for approval before being put into operation are not permitted to be uploaded on the Internet.

The announcement further points out that if an online game which has passed pre-examination or import examination wishes to change its operating company, release a new edition or a new trailer, or update its contents, it must re-pass the pre-examination or import examination procedures. Otherwise, the previous approval document will be cancelled, the operation of the game will be suspended, and the access service may even be closed and the website shut down.

In terms of the examination and approval of imported online games, the announcement reiterated that GAPP is in charge of the examination and approval of imported network games which have been authorized by foreign copyright owners. Any entity which provides operation services for imported network games which have not been authorized by foreign copyright owners is committing piracy and shall be investigated and prosecuted by the National Copyright Administration. Any entity which provides operation services for imported network games without examination and approval from the GAPP, or provides operation and promotion services for network games from foreign countries, will be forced to close down in accordance with law. In addition, the entity will be forced to stop operation, their access to relevant games shall be cancelled, and their website shall forcibly shut down.
                                                                         　　　 Source:People's Daily Online