China Opens Game Console Market to Foreign-Invested Enterprises

The Ministry of Culture last week posted the Circular on Permitting Domestic and Foreign-invested Enterprises to Engage in the Production and Sales of Game and Entertainment Equipment (the "Circular") together with the Administrative Regulation on Examination of Game Contents and Entertainment Equipment. This development is a nation-wide extension of a prior opening in the Shanghai Free Trade Zone.

The game and entertainment equipment referred to in this Circular includes the following items, except those for export:

• electronic game players used in business premises
• electronic game players used with television receiver equipment
• handheld electronic game players

Game content is subject to approval by culture departments, to be processed within 20 days from application. Prohibited content includes:

• Politically and legally banned subjects,
• Security risks,
• Gambling

Encouraged content includes:

• intellectual
• educational
• motion sensing
• bodybuilding

In addition, the Circular also requires game and entertainment equipment producers and distributors to establish a system of content self-examination, and strengthen training for review staff.