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InvestingBeijing Denounces Video Video games As "Spiritual Opium", Tencent Tumbles After Imposing...

Beijing Denounces Video Video games As “Spiritual Opium”, Tencent Tumbles After Imposing Limits

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China’s broad-based crackdown on perceived anti-social tendencies of its largest companies continued on Tuesday with a brand new business being focused: video video games.

Beijing’s newest try and rein within the excesses of capitalistic improvement – and reassert the “primacy of socialism”, as Reuters described it – got here Tuesday within the type of an article printed by the Xinhua-affiliated “Economic Information Daily” which provided up a scathing critique of China’s video-game business and its impression on minors. The article asserted (citing anecdotal studies from youngsters) are spending as much as 8 hours a day taking part in the nation’s hottest recreation: “Honor of Kings”.

The article sparked a selloff in shares of Tencent, the purveyor of “Honor of Kings”, and different main Chinese video-game shares. In response to the article, Tencent introduced strict new curbs for minors utilizing its video-game platforms. The firm mentioned it will additional curb minors’ entry to its flagship online game, permitting them simply 1 hour of play a day (with 2 hours on holidays). Tencent shares dropped one other 10% in early commerce on Tuesday, wiping one other $60 billion from the market cap of China’s struggling tech behemoth. Even extra so than Alibaba, Tencent has turn out to be the most important market casualty of China’s crackdown on all the pieces from ridesharing, to funds, to music rights, to non-public tutoring – and now, video video games.

Shares of Chinese firms together with NetEase, recreation developer XD nd cellular gaming firm GMGE Technology Group additionally noticed heavy promoting. The selloff even prolonged to the US, the place shares of Activision Blizzard and Electronic Arts, Zynga and Take Two Interactive fell between 1% and 4% in premarket buying and selling.

Tencent in a press release mentioned it can introduce extra measures to cut back minors’ money and time spent on video games, beginning with “Honor of Kings”. It additionally referred to as for an business ban on gaming for kids underneath 12 years previous.

The firm didn’t deal with the article in its assertion, nor did it reply to a Reuters request for remark.

The article printed by Economic Information Daily was taken offline (although the print version nonetheless carried the story), however Reuters highlighted some selection excerpts. One particularly caught our eye: the article blasted video video games as “spiritual opium”.

In the article, the newspaper singled out “Honor of Kings” as the most well-liked on-line recreation amongst college students who, it mentioned, performed for as much as eight hours a day.

“‘Spiritual opium’ has grown into an industry worth hundreds of billions,” the newspaper mentioned.

“….No industry, no sport, can be allowed to develop in a way that will destroy a generation.”

For China, the opium reference is freighted with historic significance, as Reuters reminds us.

Opium grew to become a delicate topic in China after it ceded Hong Kong island to Britain “in perpetuity” in 1842 on the finish of the First Opium War, fought over the export of the drug to China the place dependancy grew to become widespread.

As the blistering selloff gained momentum, one other Chinese media outlet printed a brand new piece providing some clarification on the crackdown. The piece sought to put aside the topic of blame, saying it will be “immoral” guilty gaming firms, and that oldsters and the broader group are accountable for addressing extreme gaming.

A separate opinion piece printed by the China News Service on its official Twitter-like Weibo account hours after the Economic Information Daily article took a unique tone, saying that blame couldn’t be positioned on anyone occasion, together with recreation builders, for baby dependancy to on-line video video games.

“Schools, game developers, parents, and other parties need to work together,” mentioned the information outlet, which can be state-run.

The video-game crackdown is not solely surprising. Beijing has sought to curb video gaming amongst youngsters since 2017.

What’s ironic, actually, is the “spiritual opium” reference. It’s harking back to a preferred Marxist axiom denouncing faith as “the opiate of the masses”.

Well, within the US, the present “opiate of the masses” is an precise opiate: Chinese-made fentanyl, which is driving the worst overdose disaster in American historical past.

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