Guangzhou to support esports and video games

City will offer cash incentives of up to 5m yuan as authorities ease stance on industry

Guangzhou has rolled out plans to support the local video gaming and esports industry with cash rewards of up to 5 million yuan (HK$5.4 million), in the latest sign of authorities adopting a positive stance on the sector.

Huangpu district in the city was aiming to build a so-called 10-minute service circle for local gaming companies, providing support for licence applications, legal advice and talent training, among other services, officials said on Thursday, according to a report yesterday by state-run China National Radio (CNR).

The scheme was based on Huangpu’s 10-point plan released on Monday for the gaming and esports industry, which aims to attract three to five leading players to the district within three years and make five to 10 games that create both economic and social benefits, according to a document released by the district’s publishing authority.

The local government was helping the industry enhance its competitiveness in culture and “soft power”, the document said.

The plan encourages studios to develop “original games” that promote Chinese values and traditional culture, and promises a cash prize of 300,000 yuan each for 10 games annually.

The government will also offer up to 5 million yuan to developers whose games have been selected for major esports events. However, developers need to have 1 billion yuan in annual sales to be eligible for the top cash reward.

High-level esports stadiums and teams that relocate to Huangpu could also qualify for rewards or subsidies of 5 million yuan, according to the plan.

Separately, the city will establish China’s first big data platform dedicated to the gaming industry, to provide guidance to companies on game development and facilitate the approval process for game publishing, according to the CNR report.

China has been softening its stance towards the industry, which has been under strict scrutiny to curb the perceived social ills of game addiction among minors.

Tempering that stance is a desire to promote socialist values through video games.

The National Press and Publication Administration, the regulator in charge of licensing video games, has been accelerating the approval of licences in larger batches this year.

Authorities have been trying to restore confidence in the market after it suffered a major blow last December from draft regulations that aimed to curb “excessive” playing and spending.