In a significant move aimed at promoting healthy internet habits among children, China’s cyberspace regulator unveiled a new regulation on August 2nd, limiting daily smartphone usage for children under 18 to a maximum of two hours. The announcement had a notable impact on tech company stocks, sparking discussions about the implications of the new rule. The Cyberspace Administration of China (CAC) emphasized the importance of creating a safe online environment for minors and introduced the concept of “minor mode” programs, restricting internet access for users under 18 between 10 p.m. and 6 a.m.
Chinese Children Allowed To Use Smartphones Only For 2-Hours In A Day: Navigating New Government Regulation
The new regulation entails several key points. According to the draft guidelines issued by the CAC, providers of smart devices are required to set specific time limits for minors. Users aged 16 to 18 will be permitted a daily smartphone usage of two hours, while those between eight to 16 years of age will have access for one hour. For children under eight, the usage will be limited to a mere eight minutes. The CAC also highlighted the importance of giving parents the flexibility to opt out of these time restrictions for their children.
However, the market response to this announcement was mixed. Shares of several Chinese tech companies experienced declines in Hong Kong’s afternoon trade, showcasing investor uncertainty regarding the potential impact of the new regulation. Notable declines were seen in Bilibili (9626.HK) and Kuaishou (1024.HK), with decreases of 6.98% and 3.53% respectively. Even Tencent Holdings (0700.HK), the operator of the popular social network app WeChat, witnessed a 2.99% drop in stock prices.
Challenges and Adjustments for China’s Tech Industry
Xia Hailong, a lawyer at the Shanghai Shenlun law firm, emphasized the substantial challenges that internet companies could face in implementing these new regulations. He underscored that compliance would entail considerable effort and additional costs, with potential risks of non-compliance looming. Hailong speculated that many internet companies might opt to restrict minors’ access to their services altogether to avoid complications.
Addressing Youth Internet Concerns: A Changing Landscape for China’s Tech Industry
The new smartphone usage rules are part of a broader effort by Chinese authorities to address growing concerns about internet addiction and myopia among the youth. In 2021, the government imposed curfews on video game players under 18, impacting major gaming companies like Tencent. Additionally, video-sharing platforms such as Bilibili, Kuaishou, and ByteDance have already introduced “teenage modes” to regulate content access and usage duration.
These proposed regulations reflect Beijing’s signals of support for the tech industry while also highlighting the government’s commitment to ensuring the online safety and well-being of young users. The implementation of these guidelines is expected to encourage responsible technology usage among children, promoting a balanced lifestyle in the digital age.
