TMT 2023 Annual Review and 2024 Outlook

In 2023, the Technology, Media, and Telecommunications (“TMT”) sector in China underwent significant regulatory developments. The emerging technologies like generative artificial intelligence (“GenAI”) have been revolutionising operations and service delivery while offering new avenues for growth and value creation as the relevant laws and regulations concerning artificial intelligence (“AI”) governance in China have made major breakthroughs in 2023.

In the interim, we have witnessed remarkable regulatory advancements across various domains of the TMT sector. This article will concentrate on the segments that are anticipated to steer the TMT legislative discourse in the foreseeable future, such as Internet advertising, online sales, telecommunications, intelligent and connected vehicles, and gaming-related issues. In addition, as we head into 2024, it will be crucial for businesses to adapt to these regulatory changes and tackle with the new challenges.

If you’d like to speak with us about how to align your business, or subscribe for our newsletters and be notified of our events on China TMT regulatory updates, please contact James Gong at [email protected].

Part I: AI Governance

For AI, China has advanced its AI governance through targeted legal frameworks like the Management of Generative Artificial Intelligence Services (“Generative AI Measures”) and the Provisions on the Administration of Deep Synthesis of Internet Information Services (“Deep Synthesis Provisions”), alongside the Technology Ethics Review Measures (Trial), complemented by proactive enforcement actions including the approval of deep synthesis and GenAI algorithms by leading tech companies, reflecting a comprehensive and evolving approach to regulate and guide AI development in 2023.

1. Regulatory developments

1) The CAC issued regulatory rules targeting GenAI and deep synthesis

Following the introduction of the provisions on recommended algorithms in 2022, the Cyberspace Administration of China (“CAC”) has successively formulated and issued regulatory rules for deep synthesis and GenAI in 2023. Each of the regulations currently in force has a more targeted scope than other laws that govern companies and technology providers broadly.

GenAI

The Generative AI Measures introduced by CAC and other governmental bodies, came into effect on August 15, 2023. (See our views here and here.) The Generative AI Measures aims to foster the responsible and standardised growth of GenAI technology. The Generative AI Measures are part of China’s effort to ensure the healthy development and application of GenAI technologies, key requirements for GenAI service providers are laid down from several crucial aspects, including lawful data processing, clear labelling rules, responsibility as content producers, protection of minors, and user data protection, etc.

Deep Synthesis

On January 10, 2023, China implemented the Deep Synthesis Provisions, which addresses the latest developments in deep synthesis technology and outlines detailed obligations for service providers, technical supporters, and users. The main requirements provided by the Deep Synthesis Provisions include establishing comprehensive management systems, formulating transparent and public rules, setting up content review mechanisms, and conducting regular security assessments. These provisions uphold responsible deep synthesis technology use, safeguarding information security and public welfare.

It is noteworthy that the GenAI and deep synthesis technology share some degrees of conceptual overlap. However, judging from the definitions provided by the law, GenAI emphasises the use of AI technology, while deep synthesis focuses on the generated virtual content. The reason for the promulgation of two provisions targeting similar technologies is that the CAC adopts a rapid legislation process targeting the most prominent and influential technologies under the idea of agile governance. Therefore, deepfake services using AI technology such as deep fake are likely to be subject to both provisions at the same time.

2) The MOST: Technology ethics review measures

Apart from the CAC, on April 4, 2023, China's Ministry of Science and Technology (“MOST”) issued the Technology Ethics Review Measures (Trial), which requires companies engaged in AI whose research involves sensitive fields to establish an ethics (review) committee and conduct an ethics review. Specifically, the establishment of an ethics (review) committee and the conduct of ethics review activities are also key compliance points for AI enterprises during the algorithm filing process.

2. Enforcement developments

China’s Deep Synthesis Algorithm Renaissance: Deep synthesis algorithm filing and GenAI filing

Algorithm filing is a unique requirement in China, which requires certain service providers to undergo a comprehensive evaluation of their algorithms and file them with the CAC for record. The goals of this mandate are to strengthen regulatory oversight, promote comprehensive governance, and pre-empt malicious algorithmic practices.

As of December 2023, the CAC has granted approval to two batches of GenAI and deep synthesis algorithms, totalling 151 algorithms. These approvals have been provided to prominent technology companies, most of which are influential digital leaders. These technologies cover a wide range of applications, including virtual 3D human synthesis, audio-visual and text generation, intelligent customer service, and dialogue systems.

3. Outlook for 2024

As GenAI begin to gain popularity in early 2023, we note the continued concern from Chinese regulators about these technologies. In 2024, more and more AI applications will appear on the market, and the compliance scenarios that may be involved will also be more complex. (We will publish a series of articles comparing Chinese AI-related legislation with European AI legislation. If you would like to be posted, please follow us through the contact information at the bottom of this article.)

1) Draft AI law to be released?

On June 6, 2023, the State Council’s Legislative Work Plan for 2023 was published, clearly including the Artificial Intelligence Law in the agenda.

On August 15, some of China’s most prestigious universities co-organised a conference on AI governance with the government’s support, unveiling the Artificial Intelligence Law (Model Law). This model law is not a draft legislation and is of academic interest only. However, judging from our previous experience of the personal information protection legislation, academic endeavours are often the prelude to formal legislation.

Yet, on 7 September 2023, Xinhua News was entrusted to release the 14th National People’s Congress Standing Committee’s legislative plan, drawing a “master blueprint” for China’s next five-year, however, the Artificial Intelligence Law was missing from this plan. Its absence hinted that this legal work was still waiting for its first appearance before the lawmakers.

2) Local regulations and standards on AI governance will continue to be introduced

Since 2020, TC260 and the Chinese Educational Technology Standardisation Committee have successively released a number of recommended standards for AI and related technologies. In the past year, we have seen multiple drafts of AI-related standards and plans for the development of new group standards, and this trend will continue in 2024.

Considering that the Artificial Intelligence Law will not be promulgated in the short term, we expect that local governments will further try to introduce industrial policies that promote the development of AI, taking into account AI security in the future.

Part II: Internet Advertising

1. Regulatory developments

1) The SAMR further clarifies the main responsibilities of Internet advertising and strengthens supervision of content and specific industry areas

During the past year, the State Administration for Market Regulation (“SAMR”) has launched a series of regulatory measures for general and industry-specific norms of Internet advertising. For instance, the Measures on the Administration of Internet Advertising came into effect on 1 May 2023, through which the SAMR further clarifies the responsibilities of Internet advertising-related business entities and specifies the do’s and don’ts for online advertising. Besides, on 28 August 2023, the SAMR further drafted the Guidelines for the Regulatory Enforcement concerning the Identifiability of Internet Advertising. The draft aiming to ensure that consumers are not misled by advertising content disguised as other forms by clarifying the requirements such as that advertisers should use the word “advertisement” in their promotions.

Moreover, in 2023, the SAMR has introduced specific requirements for China’s most regulated industry to ensure that the review of advertisements for food supplements, food for special medical purposes, pharmaceuticals and medical devices is conducted in a manner that is both legally compliant and ethically responsible. For example, on 19 June 2023, the SAMR released the Notification on Addressing Issues in Advertising Regulatory Practices, urging to standardise, streamline, and facilitate the review of advertisements for food supplements, food for special medical purposes, pharmaceuticals, and medical devices. It also emphasises the need to strictly implement territorial monitoring principles while continuously enhancing the safety management of advertising monitoring data.

As we see in 2023, these regulatory measures of the SAMR are intended to maintain market order and promote the healthy and sustainable development of the digital economy through targeted supervision of Internet advertising. These changes mean to shape a more standardised, transparent, and fair market environment for consumers, regulated advertisers, and all relevant parties, which will not only help consumers make informed consumption decisions, but also help advertisers better plan and execute their advertising strategies to improve their brand image and market competitiveness.

2) Local Municipal Supervision Bureau refines advertising compliance requirements

Compared with the overall control of the Internet advertising industry by the SAMR, the local governments, while responding to the regulatory framework, have put forward more requirements on how Internet advertising is regulated in practice, what media should be used, and how to ensure that advertisements are identifiable and ethical responsible. For example, on 30 August 2023, the Beijing Municipal Administration of Market Supervision issued the Guidelines for Compliance of Beijing Internet Advertising Enterprises, aiming to further regulate Internet advertising activities, ensure the legality, authenticity, and identifiability of advertising activities, and promote a fair and transparent environment for Internet advertising in Beijing. Meanwhile, the Beijing Municipal Administration for Market Regulation issued the Compliance Guidelines for Celebrity Commercial Endorsements, which puts forward normative requirements for the endorsement of commercial advertisements by celebrities.

2. Enforcement developments

The 2023 enforcement activities concerning Internet advertising primarily target the following aspects:

First, they rigorously regulate unlawful advertisements that implicate guidance issues, especially those that exploit national major events for commercial marketing purposes. In this regard, the SAMR and its local branches announced several cases, involving important livelihood areas such as food, pharmaceuticals and health care, medical services, beauty and cosmetics, investment and financial management, education and training, and real estate.

Second, they severely crack down on unlawful advertisements pertaining to “miracle doctors and medicines” (false and overhyped doctors and medicines) and “three products (pharmaceuticals, health food, food for special medical purposes) and one device (medical device)”, which encompass the enforcement against fraudulent medical, pharmaceutical, and medical device advertisements. For example, on 27 October, the SAMR released the eighth batch of typical cases in the "Iron Fist" action for investigating and handling livelihood-related cases, focusing on “severely cracking down on false and illegal advertising of ‘miracle doctors’ and ‘miracle drugs’”, and severely punishing relevant illegal acts.

Third, they augment the supervision of unlawful online advertisements in the Internet domain, particularly concentrating on new forms of advertising such as live-stream marketing and product evaluation, etc. For instance, enforcement authorities have issued a series of fines in 2023 for illegal activities of not prominently marking advertisements in short video platform content featuring KOLs (Key Opinion Leaders) exploring shops. So far, the number of such cases is not large, but the illegal act of not marking advertisements in KOL exploration videos is expected to become a focus of regulatory authorities in various regions.

These focuses in 2023 manifest a zero-tolerance stance towards unlawful Internet advertisements, accentuating the strict compliance with laws and regulations, and prioritising the safeguarding of consumer rights and public interest.

3. Outlook for 2024

The Standing Committee of the National People’s Congress has persistently expanded the conventional legal standards to the cyberspace domain, amended statutes such as the Consumer Rights and Interests Protection Law and the Food Safety Law, and instituted more refined system regulations for facets such as consumer rights and interests safeguarding in online transactions, food safety obligations of online platforms, and Internet advertising.

In 2023, along with the emergence of novel forms of business such as online marketing and live streaming, the SAMR has promulgated more comprehensive directives on the oversight of Internet advertising, and local authorities correspondingly enacted prescriptive documents for the particular display modes of Internet advertising in the novel forms context.

In 2024, with the flourishing growth of the Internet economy, we anticipate local authorities to devise more explicit rules on matters such as civil rights defense and the suppression of new varieties of cybercrime under the new online forms of business, especially on matters such as the exploitation of online advertising to disseminate unlawful and detrimental information, the violation of consumers’ personal information rights and interests, and telecommunications network fraud, which are of interest to the people, furnish more law enforcement instances, explicate the law with instances, and advance the rule of law in cyberspace.

Part III: Online Sales

1. Regulatory developments

1) The NMPA has strengthened the supervision on online sales of drugs and medical devices

Innovations on drugs and medical devices in China is booming, with a high number of applications and approvals in recent years and, especially, in the first half of 2023. In 2022, the cumulative online sales of drugs, medical devices, and cosmetics has reached 292.4 billion yuan, and may exceed 350 billion yuan in 2023. With the growth of the Internet economy, the state is strengthening the supervision of online sales of drugs and medical devices, and the National Medical Products Administration (“NMPA”) has taken targeted measures to balance the convenience of online shopping and the safety of online drug purchase. For example, on 6 September 2023, the NMPA issued the Guidelines for Inspection of Third-party Platforms for Online Drug Trading (Draft for Comment) targeting third-party platforms that sell drugs online, following the implementation of the Measures for the Supervision and Administration of Online Drug Sales in December last year. Accordingly, the pharmacological supervision department will inspect third-party platforms by validating the registered merchants, examining qualifications, and examining the compliance of the sale of medicines. On 14 September 2023, the NMPA released the Good Practice for Online Sale of Medical Devices (Draft for Comment), aiming to guarantee the quality and safety of medical devices sold online through targeted supervision.

2) Tightened supervision on new forms of online sales

In 2023, there has been a surge in online sales activities through new forms such as live streaming marketing, live streaming selling, and mini-programs ordering. How to provide normative guidance for marketing, sales and after-sales services in these special scenarios has become an important focus of supervision. On 23 September 2023, the China Advertising Association released the Codes of Practice for After-sales Service of Live Webcast Marketing as the initial attempts. Although the codes function as a group of non-binding standard, it clarifies the process of live broadcast, emphasises the responsibilities of all parties, and provides a reference for impending regulatory requirements. Besides, local regulators have also made initial attempts. For instance, on 7 August 2023, the Shanghai Municipal Market Supervision Administration released three drafts of compliance guidelines targeting online catering and live-stream marketing, which include the Compliance Guidelines for E-tailing Platforms in Shanghai, the Compliance Guidelines for Online Catering Service Platforms in Shanghai, and the Compliance Guidelines for Live Streaming Marketing Activities in Shanghai.

2. Enforcement developments

In 2023, we have seen that the NMPA and SAMR have tightened enforcement in the medical field, especially for activities related to drugs and medical devices. The NMPA has reported four batches of illegal and non-compliant cases related to online sales of medical devices. The main violations included the unlicensed sale of medical devices, unauthorised changes in the mode of operation, failure to display the medical device business registration certificate and medical device registration certificate, failure to rectify as required, and failure to update the displayed medical device registration certificate. Meanwhile, the SAMR successively published several batches of typical cases of illegal activities involving pandemic-related pharmaceuticals and medical supplies and punished on price gouging, counterfeit and substandard products, use of expired medical devices, and other illegal sales of drug and medical devices.

3. Outlook for 2024

By now, online sales supervision and management measures for pharmaceuticals, medical devices, and cosmetics have been issued. They mainly set the legal responsibilities of supervision departments, operating enterprises, and third-party platforms, strengthen online sales monitoring and case investigation, emphasise safety risk control, and require quality management for online sales. It is understood that drug regulatory authorities at all levels are promoting and implementing these regulations, improving supporting systems, and urging relevant enterprises to follow the law. We expect more law enforcement cases on online sales of pharmaceuticals and medical devices in 2024, to alert all parties in this field.

In China, pharmaceuticals and medical devices are among the most stringently regulated industries. After improving legislation and law enforcement in this field, we expect more rule of law and network governance improvement in 2024, in fields like Internet financial sales, e-commerce related, and others. The regulatory authorities are expected to propose more normative requirements for online sales in each industry, based on their characteristics, to strengthen legal qualification review and management of merchants, as well as platform cooperation in product recall, risk disposal, supervision and inspection, and work with relevant departments to do related work, improving targeting, accuracy, and timeliness of the monitoring.

Part IV: Telecommunications

1. Regulatory developments

1) Mobile applications and in-app mini-programs filing

On 8 August 2023, the Ministry of Industry and Information Technology (“MIIT”) issued the Notice on the Filing of Mobile Internet Applications. According to the notice, mobile app developers are now required to file their applications with the MIIT. Developers or operators of mobile apps will have until the end of March 2024 to complete the filing process with the respective provincial communications administrations. From April 2024 until the end of June 2024, the telecommunications authorities will conduct reviews and inspections of the filed applications and take necessary measures to address Apps without proper filings.

2) Regulations on Handling of Reports of Illegal Activities in the Telecommunications Sector was issued

On 13 March 2023. the MIIT released the Regulations on Handling of Reports of Illegal Activities in the Telecommunications Sector, aiming to regulate the handling of reports of illegal activities in the MIIT sector, maintain order in the telecommunications market, and protect the legitimate rights and interests of relevant users. The document outlines the requirements for the acceptance and handling of reports and the measures to improve the processing procedures.

2. Enforcement developments

In 2023, the key focus of law enforcement in the telecommunications sector was primarily on data security and radio management. For our views on MIIT’s 2023 actions in the data protection area, please click here. In addition, in terms of radio management, the Radio Regulation Bureau of the MIIT and local authorities for market regulation focus on cracking down the unauthorised use of radio frequencies and the establishment and use of radio stations, including penalties for setting up radio stations without permission and selling radio transmission equipment without model approval. These enforcement activities are aimed at ensuring data security and radio management compliance in the field of telecommunications, as well as ensuring the proper functioning of public communication networks.

3. Outlook for 2024

More active administrative enforcement actions and campaign against non-compliance is anticipated to be observed in 2024 - especially the current crackdown on non-compliant Apps and mini programs will continue and we expect to see the more enforcement cases in relation to the protection of customers’ rights.

Moreover, on 10 August 2023, the MIIT and the Ministry of Finance jointly issued the Action Plan for Steady Growth of the Electronic Information Manufacturing Industry in 2023-2024. The plan aims to better leverage the supporting, leading, and enabling role of the electronic information manufacturing industry in the industrial sector, and facilitate the achievement of the main expected goals of industrial economic development. The plan provides the investment, development, and promotion of advanced science and technology, covering computer, telecommunications, and other electronic equipment manufacturing industries, as well as related fields such as lithium-ion battery, photovoltaic and component manufacturing. With the development of the above areas, the related legal issues, e.g., administrative licensing, network security, intellectual property rights, and consumer protection also need to be paid close attention by relevant enterprises.

It is to be expected that the licensing conditions for value-added telecommunication services may be further liberalised in the future, becoming more favourable to foreign companies. The State Council issued the Work Plan for Supporting Beijing to Deepen the Construction of the Comprehensive Pilot Zone for the Expansion and Opening Up of the National Service Industry, in which it is proposed to “abolish the restriction on the ratio of foreign shares in value-added telecommunication businesses, such as the information service business (Appstores only, excluding online publishing services) and the Internet access service business (Internet access services for subscribers only), and to consider the expansion of the opening up of value-added telecommunication businesses in an appropriate manner”. In this regard, foreign investment in the telecommunications sector may have more freedom in the future.

Part V: Intelligent and Connected Vehicles

1. Regulatory developments

1) Facilitation on intelligent transformation of the automotive industry with design of regulatory framework

Smart city is a creative concept proposed early, whose realisation needs to be supported by city infrastructure, design of regulatory framework, and scientific and technological innovation. However, how to apply intelligent and connected vehicles (“ICVs”) equipped with autonomous driving functions in the city setting, how to maximise their performance, and how can they collaborate with city infrastructure to realise the ideas of smart cities remain unclear. In 2023, with the development of the automotive industry, the regulatory authorities put forward more normative requirements for applying ICVs equipped with autonomous driving functions on actual urban roads, so as to facilitate the application of all such kind of ICV models, support the intelligent transformation of the automotive industry, construct the industry ecology, integrate intelligent road infrastructure construction into urban road planning, and foster the synergistic development of ICVs and infrastructure of smart city. For example, on 17 November 2023, the MIIT, the Ministry of Public Security, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport (“MOT”) issued the Notice on the Pilot Work on the Access to Road Passage of Intelligent and Connected Vehicles. After selection, ICVs equipped with autonomous driving functions with mass production conditions will be qualified to carry out road access pilots. On 12 April 2023, the Hangzhou Municipal People’s Government issued the Management Measures for Testing and Application of Intelligent Connected Vehicles, giving priority to the testing and application of ICVs in domains such as logistics and distribution, short-haul and feeder transport, intelligent public transportation, sanitation services, and road maintenance. Moreover, on 5 December 2023, the MOT issued the Guidelines on Transportation Safety Services for Autonomous Vehicles (Trial), which puts forward relevant requirements in eight aspects in the field of transport services of autonomous driving vehicles. Specifically, the requirements concerning the scope of application, basic principles, application scenarios, autonomous driving transport operators, staffing, transport vehicles, safety and security, and safety supervision.

2) Specific regulations have been issued for the supervision of high-precision map data

High-precision maps originated from traditional navigation maps, mainly to meet the demand for higher map accuracy in autonomous driving and other fields. Promoting the development of the high-precision map industry with unified and normative regulatory standards can promote the development of China's autonomous vehicle industry. On 31 March 2023, the Guiding Opinions on the Pilot Application of High-Precision Maps for Intelligent Connected Vehicles in Beijing were jointly promulgated by the Beijing Municipal Commission of Planning and Natural Resources and the Beijing Municipal Bureau of Economy and Information Technology. The guiding opinions delineate the scope of application of the high-precision maps and the measures for enhancing government services and safety supervision, with the objective of advancing the application of high-precision maps for ICVs and the growth of the industry in Beijing.

On 27 September 2023, the Ministry of Natural Resources promulgated 25 industry standards, encompassing the Specification for Road High-Precision Navigation Electronic Map Data. These standards pertain to various areas, such as high-precision navigation electronic map, emergency mapping, urban impermeable surface data, and public parking resource information, etc. The Specification for Road High-Precision Navigation Electronic Map Data, notably, is the inaugural industry standard on high-precision navigation maps in China and will extensively serve the domains of ICVs, autonomous driving, and robot intelligent navigation, aiming to bolster the advancement of navigation technology and industry.

2. Enforcement developments

The cybersecurity protection level determination review carried out for ICVs is in full swing in 2023. For example, on 25 July 2023, an expert team, led by the Hubei Provincial Communications Administration, conducted a review of the cybersecurity protection level determination filing information that was submitted by various entities, including platform operators offering ICVs services, within the province. Out of the 68 companies that underwent the review, 54 were found to have failed to comply with the relevant requirements.

Echoing the development of the ICVs industry and its specific applications and tests, the Taiheqiao Smart Park, the first integrated smart park for ICVs in China, inaugurated its operations in Beijing. The park functions as a testing ground for the vehicle-road-cloud integration system for ICVs in China, as well as a platform to showcase the research and development accomplishments and integrated application in the industry, providing a glimpse into the progress and potential of ICVs technology.

3. Outlook for 2024

The MIIT and the National Standardisation Administration jointly revised the National Vehicle Networking Industry Standard System Construction Guide (Intelligent and Connected Vehicles) (2023 Edition) to meet the new demands of the new phase of ICVs’ development in China. The guide provides recommendations for establishing a standard system for ICVs, covering the general specifications, core technologies, key product applications, and testing standards of ICVs. The guide aims to outline the development plan of ICVs in 2023 and guide the industry in developing and updating relevant standards in the field of ICVs.

We have witnessed the proactive responses from provincial governments, such as the Decision on Promoting the Development of Vehicle Connecting and Intelligent and Connected Vehicles passed by the Jiangsu Province on November 29, 2023, which will take effect on January 1, 2024. We look forward to seeing more local standards and more pilot projects in 2024, to clarify the various standards in the technical framework of the ICVs industry. Meanwhile, in 2024, we should also take into account the technical connections between ICVs and other related factors, such as mobile terminals, infrastructure, smart cities, travel services, etc., and the regulators are expected to propose more detailed industry standards and local regulations in 2024.

Part VI: Gaming-related Issues

1. Regulatory developments

More protection on minors’ rights and interests in the game industry

In 2023, a number of regulations have been introduced and implemented to better protect the minors’ rights and interests in the online entertainment environment. For example, on 2 August 2023, the CAC released the Guidelines for Developing the Minors Mode in the Mobile Internet (Draft for Comment), which proposes the “age-specific principle” and expands the application of such principle from Apps to mobile smart terminals and App stores, aiming to create a safe and healthy online environment for minors. Moreover, on 22 December 2023, the National News and Publishing Administration released the Measures for the Management of Online Games and is currently soliciting public opinions. The document stipulates that online games should not offer incentives such as daily login, first recharge, and continuous recharge and must establish user recharge limits. To prevent irrational consumption behaviour, alerts such as a pop-up warnings should be displayed to users. Game industry’s preparation of comprehensive adaptation to this document and comprehensive improvement of its products and operations will be one of the top priority tasks in the first half of 2024 in the event of the finalisation of this document.

Moreover, in response to the current discussions on minors’ game recharges, some local regulatory authorities have put forward requirements to further strengthening the real-name authentication function and recharge management and prohibiting minors from using their parental identity to recharge in order to resolve the concerns of recharge and increase the refund ratio for minors. In this regard, relevant companies expressed that they would launch corresponding improvement timely according to regulatory requirements.

Although not specifically targeting the game industry, on 24 October 2023, the State Council released the Regulations on the Protection of Minors in Cyberspace, which just took effect on 1 January 2024, imposing a series of restrictions on minors in terms of the time and money they spend on games. (Please see our views here).

2. Enforcement developments

The protection and security of minors’ Internet rights and interests has become an important law enforcement topic in the game-related field in 2023, focusing on how to effectively protect the legitimate rights of minors and create a healthy online environment. In March 2023, the Supreme People’s Court released typical cases including incidents of giving rewards or recharging online conducted by minors. In the case of Zhang vs. XYZ Company, it was determined that when minors exceed their age and intellectual capacity to engage in online game recharges, guardians have the legal rights to reclaim the recharged funds.

Besides, local cyberspace administrations and procuratorates have also released cases on administrative law enforcement and legal supervision related to the protection of minors in cyberspace. Such action launched a series of thematic activities on the protection of minors in cyberspace to enhance the public’s awareness of online security. In August 2023, the Guangdong Provincial Consumer Council conducted a “Minors’ game supervision interview” with several leading online game companies and software platform enterprises. The council requested that effective measures be taken to address the issues of minors using adult accounts to log in to the game and conducting recharge activities. During the interview, relevant entities are instructed to refund minors’ fees, and to effectively fulfil their legal obligation of preventing minors from becoming addicted to online games.

3. Outlook for 2024

Considering that the Regulations on the Protection of Minors in Cyberspace has just come into force, we expect more child protection cases to emerge in the gaming sector in 2024, concerning that minors constitute a significant audience of online platforms and online game products. We anticipate the state will strengthen the supervision and law enforcement of games, specifically targeting smaller game producers in 2024. Meanwhile, more explorations might be carried out according to the Regulations on the Protection of Minors in Cyberspace and the Measures for the Management of Online Games (Draft for Comments) by the regulators to tighten the supervision on the games industry.