China Appears to Backpedal From Video Game Crackdown

Chinese regulators on Tuesday appeared to backpedal from a plan to reduce how much money people spend on online video games, after the proposal had tanked video gaming companies’ stocks and raised doubts about the government’s commitment to reviving China’s slowing economy.

The draft rules disappeared from the website of the National Press and Publication Administration, the agency overseeing the proposal, after previously being posted there for public comment. Instead, the page displayed an error.

The agency, which issues licenses to game publishers and regulates the industry, did not issue any notice of retraction. An employee who answered the phone said she was not clear on the circumstances surrounding the move.

Even absent confirmation that the proposal had been killed, the stock prices of China’s two largest video game companies jumped on Tuesday, with Tencent rising 3.7 percent and Netease rising 6 percent, more than the overall market.

The wide-ranging draft rules, as first announced late last month, would have imposed spending limits on the video gaming platforms and prohibited minors from tipping video game live streamers, a popular way for fans to support their favorite online influencers. They also would have banned companies from offering rewards for frequent logins, and implemented a broad prohibition on any content that could endanger national security.

The authorities said that the goal was to protect minors and improve regulation of the gaming industry.