Is China backing down on new, strict plans for the gaming industry?

China's regulators appear to be backing away from their original plans to reduce spending on online video games after the proposal sent shares in video game companies tumbling while raising concerns about the government's commitment to reviving China's slowing economy.

While there has been no announcement from the authority, whose job it is to license game publishers and regulate the industry, regarding a change in plans, the draft rules have disappeared from the National Press and Publication Administration's website. Instead, an error was displayed on the page.

Although there was no confirmation that the proposal had been withdrawn, the share prices of China's two largest video game companies suddenly and significantly increased.

The authorities had set the goal of protecting minors and better regulating the gambling industry with these changes. The news caused share values to plummet and investors dumped billions in shares in Chinese gaming companies.

Source: www.nytimes.com