The Chinese General Administration of Press and Publication (GAPP) recently announced regulations on Internet games. All types of foreign investments are banned in this market. The ban includes indirect control or investment into domestic companies. Domestic companies importing games are also regulated. Service providers are required to submit the games to the authorities for approval first.
Source: Xinhua, October 10, 2009.
http://news.xinhuanet.com/fortune/2009-10/10/content_12206841.htm