China’s cyberspace regulator has announced new guidelines that limit smartphone usage for children under the age of 18. The Cyberspace Administration of China (CAC) aims to address concerns about internet addiction and myopia rates among young people. The proposed reforms include time restrictions and the introduction of minor mode programs on smart devices. However, the announcement has led to a decline in the stock prices of Chinese tech companies.
Under the CAC’s proposed reforms, children aged 16 to 18 will be limited to two hours of smartphone usage per day. Those aged eight to 16 will have a maximum of one hour, while children under eight will be restricted to just eight minutes. To enforce these limitations, the CAC urges smart device providers to implement minor mode programs that block internet access between 10 pm and 6 am. Furthermore, service providers should offer options for parents to opt out of these time restrictions for their children.
Market Reaction
The announcement of these guidelines has had a negative impact on Chinese tech companies. Shares in firms such as Bilibili and Kuaishou dropped significantly following the publication of the draft guidelines. Tencent Holdings, the company behind the popular social network app WeChat, also experienced a decline in its stock price. Investors are concerned about the potential financial implications of implementing the new regulations. Lawyers suggest that compliance with these rules could be costly for internet companies, and non-compliance may carry significant risks.
Chinese authorities have been increasingly alarmed by rising rates of myopia and internet addiction among young people. The restrictions on smartphone usage for children under 18 come in addition to the previously imposed curfew on video game players. These measures have already impacted gaming giants like Tencent. Tech companies, including Bilibili, Kuaishou, and ByteDance, have responded to these concerns by introducing features like “teenage modes” that limit access to certain content and restrict usage time. ByteDance’s platform Douyin, similar to TikTok, has implemented a limit of 40 minutes for teenage users.
China’s regulation of its technology industry continues with the introduction of stricter rules on smartphone usage for children. The proposed guidelines aim to combat issues like internet addiction and myopia among young people. However, the announcement has caused concerns among investors, leading to a decline in the stock prices of Chinese tech firms. The implementation of these regulations may pose challenges for internet companies in terms of compliance and additional costs. As China focuses on supporting the development of its tech giants, it remains to be seen how these new rules will impact the industry in the long term.
Leave a Reply