Tue

13

Oct

2009

China bans foreign investment in online games: O RLY?

China · gaming

Apparently good news for people that love bad news: just in time for "GDC China" which is taking place in Shanghai these days (not to be confused with "China GDC" ...), the Chinese General Administration of Press and Publications (GAPP) issued several notes, which were instantly picked up by Western media, reinforcing once again its announcement from earlier this year that "foreign businesses were banned from investment in China's online game operations through setting up wholly owned enterprises, joint ventures and cooperatives."

 

However, as Inside Social Games quotes a Beijing investor correctly: This is a) not a new policy and b) "total BS".

 

Its just another display of power in the ongoing fight between the Chinese Ministry of Culture (MOC) who is backing up Think Services "GDC China" event and GAPP which supports the rivaling China GDC event from Howell Expo (Think Services former 2007 JV partner).

 

All of the large Chinese game companies (see our post of the most valuable internet companies in China here) are listed on international stock exchanges and/or invested by foreign VC, so are all of the currently most promising rising stars.

 

How to publish or operate a game title in China:

For simple licensing deals or software development in China, a WOFE or in some cases even a rep office is sufficient. However for actually publishing or operating games in China foreign companies are not entitled to hold the required game licence.

 

There are 2 work-arounds for this:

  • JV with the Chinese partner holding a majority stake
  • The the so called "Sina Structure" - see graph below

 

For licensing deals, approval usually takes around 8 months (not including time required for localization and other revisions).

According to GAPP each application will take up to 80 business days before any decision to be made. This however does not include game testing time, which can lead to GAPP ending up testing your game forever.

 

For the second option the entire process can take between 18 to 30 months or longer.

 

The key to success (as with all business in China) is of course your domestic partners relationships with all involved parties.

Trackback URL for this article


Trackbacks / Pingbacks 14

Write a comment

5 Comments

  • #1

    gouggs (Saturday, 09 January 2010 17:07)

    Australian ugg's make great gifts for any woman including teenagers, college students, moms, and career women. they’re available in many styles and colors so you have a huge variety to choose from.Uggs are made of sheepskin with flat soles and a soft furry inside. typically, worn without socks, the ugg boots keeps your feet warm in the winter, but unexpectedly cool in the summer.
    Uggs have been around since the 1930s, when sheep shearers in australia wore them. these original boots were made of sheepskin all around, even on the sole. kids uggs sale today we have a hard rubber sole, making them more durable.

    Our website has womens ugg boots include styles such as the knightsbridge, the mayfaire, the ultra short, the ultra tall, the sundance, the nightfall, the classic tall, the bailey button, the metallic tall, the classic cardy, the classic short and the classic mini. the ugg classic cardy is one of the more unique styles in that it is made of a heathered merino wool blend that looks like a sweater on your feet.

    So many kinds of UGG Boots,dont you want to buy one!
    We offer many advantages of buy our products:
    *Free shipping
    *best service
    *fast delivery.one week to your door
    *If you dont like what youve received, simply return it! site:gouggs.com

  • #2

    uggdress (Saturday, 09 January 2010 17:09)

    like all boots produced by the australian uggs,our ugg boots come with a sheepskin lining that helps to eliminate moisture and keep your feet warm and dry during the cold winter months.all pairs of boots come with an outsole lightweight and flexible features a suede heel guard, which not only protects but also makes the much stronger and longer lasting.

    Ugg boots now come in a variety of styles, sizes and colors and can generally be incorporated in any kind of apparel you on wearing. typically since these boots are usually worn in the winter for thermal insulation, you can wear any kind of ski wear or even long jeans. in fact any kind of long winter insulated pants will look quite normal and fit perfectly with a pair of matching-color uggs.

    We have been seller of UGG boots for many years.You will like our UGG boots as soon as you receive them.And our website offer the best service and concessional price,free shipping,fast delivery just one week to your door.site:uggdress.com

  • #3

    bootscardy (Saturday, 09 January 2010 17:10)

    We have been seller of UGG boots for many years.You will like our UGG boots as soon as you receive them.And our website offer the best service and concessional price,free shipping,fast delivery just one week to your door.

    The uggs have been made in australia for almost 200 years.as we know australian sheepskin boots have always been called ug, ugh or ugg boots.Uggs are now be popular among both young and old people!because they are fashionable and beautiful especially warmful! Ugg Boots will warm you in the winter but in the summer your feet will not be wet.It is true that Ugg is shorter from ugly,but if you know even little bit about fashion you will know that Ugg boots are not ugly.

    So buy a pair of UGG boots just belongs to you!you will like it!site:bootscardy.com

  • #4

    famousuggs (Saturday, 09 January 2010 17:11)

    As you know, ugg boots have been around for a few years. maybe you think ugg boots are old fashion .however it is only in the last few years has ugg australia made the decision to bring out some new styles. all of which will hopefully appeal to the more fashion conscious among us. when the boots first appeared on the fashion scene they were being worn by celebrities as they were comfortable to wear.

    Do you want to keep your feet more comfortable and warm?if you do.which boots is your first consideration?admire the fashion lady dressing on street or magazine?ugg boots is your best choice.ugg boots come with a sheepskin lining that helps to eliminate moisture and keep your feet warm and dry during the cold winter months.

    Welcome to our website to buy UGG Boots,our products are all with top quality:
    * 100% authentic sheepskin for unrivalled comfort
    * Durable double stitched construction
    * genuine twin-face sheepskin for refreshing comfort
    * have a molded EVA light and flexible outsole designed for amazing comfort with every step.
    *You can wear them up or style them folded downsite:famousuggs.com

  • #5

    michael jordan shoes (Wednesday, 03 March 2010 12:38)

    We can supply a lot of shoes with many brands, such as Uggs Classic tall,Air Jordan online store,Cheap NHL Jerseys,GHD,The North Face For Cheap,Ugg Bailey Button,Nike Air Jordan,NFL Jerseys,GHDS,Cartier Glasses,Ugg Nightfall,Michael Jordan Shoes,Reebok NFL Jerseys,GHD Hair Straighteners,True Religion Jeans,Ugg 30th anniversary,Air Jordan Sneakers,Reebok Football Jerseys,Ghd Hair Products,Women Boots, sunglasses and watches with competitive price.

  • loading
Bookmark and Share