Core Viewpoint - The Chinese gaming industry is transitioning from merely exporting products to a comprehensive globalization of the entire upstream and downstream industry chain [1] Policy Background - The policy "foreign-funded game companies developing games in Shanghai are treated as domestic games" aims to promote the agglomeration of the digital content industry in Shanghai [2] - This measure is part of a broader policy framework, including the "Fair Competition Review Regulations" passed by the State Council, which aims to ensure fair competition and expand high-level opening-up [3] Industry Development - Since 2014, Shanghai has initiated a pilot program for the territorial management of domestic online games, allowing local authorities to directly review and approve game licenses [4] - The "Accelerating the Comprehensive Pilot Work Plan for Expanding the Opening-up of the Service Industry" further promotes territorial management trials for domestic online games across multiple regions [6] Policy Impact - The new policy is expected to significantly reduce the time and uncertainty for foreign-funded game companies entering the Chinese market, aligning the approval process for foreign games with that of domestic games [8] - Historically, the approval process for imported games has been much longer than for domestic games, with delays often exceeding 12 months [8] Future Outlook - The policy may lead to more foreign-funded game companies being able to engage in various activities from development to operation in China, potentially creating new jobs and competitive products [11] - There are considerations regarding the expansion of this policy to other cities and the potential relaxation of operational requirements for foreign game companies [12] - The introduction of more favorable policies for the gaming industry is anticipated, particularly benefiting small and medium-sized enterprises [13] Industry Trends - The gaming industry is witnessing a shift as major companies relocate development teams to second-tier cities, indicating a proactive approach by local governments to attract gaming enterprises [15]