China appears to have reversed its strict regulations on gaming, which were aimed at combating “obsessive” gaming behavior. The National Press and Publication Administration (NPPA) had proposed rules to limit the amount of money and time spent on video games, but the draft rules have since been removed from the NPPA website. China is the largest online gaming market in the world, but the industry has faced frequent clashes with authorities. The proposed rules would have restricted in-game purchases and targeted incentives for gamers. Share prices of Chinese gaming companies, including Tencent Holdings and NetEase, rose after the apparent reversal. However, analysts warn that uncertainty still surrounds the sector, as it remains unclear what actions the government may take in the future. In recent years, China has implemented restrictions on gaming, such as limiting children’s playtime and halting gaming licenses for a period of eight months. This has led to Chinese developers shifting their focus towards overseas games, with companies like NetEase and Tencent investing in or acquiring foreign companies. The impact of the current uncertainty on overseas expansion remains to be seen.