China's cyberspace regulator, the Cyberspace Administration of China (CAC), has proposed strict limits on smartphone usage for children under the age of 18, sparking a drop in tech company shares. The draft guidelines published on August 2 show that, children aged 16 to 18 would be allowed a maximum of two hours of smartphone usage per day, while those aged eight to 16 would be limited to one hour, and children under eight would have a mere eight minutes of usage time. To enforce these limits, the CAC wants smart device providers to introduce "minor mode" programs that block internet access on mobile devices from 10 p.m. to 6 a.m., with additional time restrictions during the day, Reuters reported.
However, the CAC allows parents to opt out of the time limits for their children. The move comes as the Chinese government has become increasingly concerned about myopia and internet addiction among young people. In 2021, a curfew was imposed on video game players under 18, affecting gaming giants like Tencent. Now, video-sharing platforms such as Bilibili, Kuaishou, and ByteDance have already implemented "teenage modes" to restrict content access and duration of use.
As a result of the proposed regulations, shares in Chinese tech firms experienced declines in afternoon trade in Hong Kong. Bilibili and Kuaishou fell 6.98% and 3.53%, respectively, while Tencent Holdings closed 2.99% lower. Investors were not optimistic about the impact on internet companies, and a Shanghai-based lawyer suggested that compliance with the new rules would involve substantial effort and additional costs.
The proposed guidelines are open for public feedback until September 2, and it comes after Beijing signalled the end of its years-long regulatory crackdown on the technology industry.
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