China aims to expand investment in esports, but its strict gaming laws to curb addiction are impeding industry growth.

Esports in China: Industry Faces a Gaming Bottleneck

In recent months, local governments in China have started planning to expand esports in the country, which is the largest esports market in the world. However, China’s efforts to rein in gaming addiction among children and teens might challenge its esports expansion. Just last week, China’s cyberspace watchdog proposed a new rule that will set the time limits on smart gadgets that will limit access to the internet to just two hours for adolescents aged between 16 to 18.

Another notable blow to esports was when the government mandated athletes to be at least 18 years of age. This meant scouting minors as future prospects vanished overnight and these teens could no longer enter professional organizations or practice clubs. In 2021, Beijing imposed laws restricting minors from playing for more than three hours a week. China also froze approvals of new game releases in the same year, which was a major crackdown on video games.

Despite all this, Shenzhen, the tech hub of China, recently pledged 10 million Yuan (roughly $1.9 million) to set up professional esports teams and gaming content. This would also involve infrastructure development to build tournament arenas and organize international competitions. The city houses thousands of gaming companies, which includes the industry giant Tencent. Meanwhile, Shanghai is setting up an esports research institute and Beijing opened its first esports center back in May. So it is clear that esports isn’t under any immediate threat, but China’s strict regulation is undoubtedly limiting the immense potential of its esports industry.