- Tencent restricts gaming hours for teens
- Airbus competitor Comac begins rollout
- Covid infection numbers rise
- iPhone 13: Apple relies on Chinese suppliers
- BASF and Sinopec to expand Verbund site
- Svolt raises new capital
- Biden’s plans for US as safe haven for Hong Kong citizens
- Johnny Erling: The potato for more food security
The alleged negative effects of violent video games served as a topic in German elections many years ago. Now, the discussion about video games is also raging in China. And the tone is just as fierce. Video games are being shunned as “spiritual opium” and “dirty things”. Authorities are now taking action against gambling addiction and late-night gaming. Finn Mayer-Kuckuk explains how the gaming industry is becoming the newest target of the authorities in their fight for more compliance and ethics in business life. To prevent conflicts with state authorities, some companies are now taking proactive action.
Comac is also threatened by disputes. The aircraft manufacturer wants a piece of the pie and aims to compete with the top dogs Boeing and Airbus. Comac is about to receive certification of their first large passenger aircraft manufactured in China – the C919. Our team in Beijing reports on the rapid growth of the Chinese aircraft market. Although Chinese aircraft are not yet cutting edge, large orders from Chinese state-owned airlines are expected to provide the necessary sales. An unfair competition? Perhaps. But Boeing and Airbus also grew with the help of government subsidies – which ultimately led to a years-long trade dispute at the WTO.
I hope you enjoy our latest issue, and I wish you a pleasant weekend
Nico Beckert
Feature
Tencent fears regulation of video games
China’s video games industry fears increasing pressure from the authorities. A series of comments in state media is seen by investors as a harbinger of a new slew of regulations aimed at the protection of youngsters from the potential dangers of mobile and online games. “Concerns grew as Covid restrictions kept more children indoors and
online,” writes analyst Ernan Cui of Gavekal-Dragonomics. “Further restrictions on underage gaming will likely materialize.” The government has already proven many times that it is not afraid to clash with its highly profitable industries.
Screen time has once again increased during the pandemic. The number of underage gamers playing more than two hours a day on their mobile phones increased from 12.5 to 13.2 percent in 2020. Even more children and teenagers now have online access. The revenue of the Chinese gaming industry amounts to 279 billion yuan (35 billion euros).
Tencent, the world market leader in mobile games, finds itself at the center of this discussion. The company’s tremendous success, especially on the domestic market, has led to young Chinese people spending more and more time and money on the game apps made by the company.
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