Chinese gaming industry faces contradictory regulations

In mid-December, Tencent released a new game called Dreamstar, hoping to compete with a similar game released by rival company NetEase. However, Chinese gaming regulators soon announced a cap on in-game spending, causing Tencent and NetEase's share prices to tumble. The incident highlights contradictions within the Chinese Communist Party's policy towards gaming and technology, as these companies play a major role in everyday life but make the Party uncomfortable. The government favors hard tech industries like semiconductors and infrastructure, directing investors to focus on those sectors, while also wanting to show sensitivity to investor concerns.