Chinese technology shares experienced a decline as the country’s cyberspace regulator proposed limiting smartphone usage for children under 18. Giants like Alibaba and Bilibili saw their shares fall following the recommendation, which would allow children only two hours of phone usage per day. The proposed law also suggests banning internet access on mobile devices from 22:00 to 06:00 local time.
The Cyberspace Administration of China (CAC) plans to enforce the rules by requiring industry players, including mobile device makers, apps, and app stores, to develop a “minor mode” function with usage limits that vary by age. Kids aged 16 to 18 would be allowed two hours of screen time, while those under eight years old would have just eight minutes. See Also:https://mybrandads.com/metas-new-ai-bot-to-launch-in-september/
The proposal is currently open to public feedback and aims to address concerns about video game addiction, which officials believe is negatively impacting children’s health. In recent years, China has implemented various measures to curb gaming addiction, including curfews and limited gaming hours for minors.
While some experts, like Ray Wang from consultancy Constellation Research, believe the rules might have workarounds, similar gaming restrictions were deemed effective when implemented. Tech giants are likely to be responsible for enforcing these new regulations, much like they did with gaming restrictions.
Technology giants will likely be made responsible for enforcing the rules, much like how it worked with gaming restrictions, Ray Wang said
“Of course there are workarounds. Kids can get the passwords to their parents’ devices, but the general consensus is that gaming restrictions have been fairly well implemented,” Mr Wang said.
The impact of increased regulation on the gaming industry has affected Chinese technology companies, contributing to the US overtaking China as the world’s biggest gaming market by revenue. However, the proposed smartphone limits for children are part of a broader effort to promote healthier tech usage among young individuals.
The CAC’s proposal and its potential consequences have drawn significant attention from investors and industry stakeholders. As the public provides feedback, the future implementation and enforcement of the smartphone usage limits remain uncertain. Meanwhile, technology shares continue to experience fluctuations in response to this regulatory development.