You can thank the Propaganda department for the game industry fiasco. I can guarantee you that among the entire government, most of the old-minded people are inside the Propaganda department.I agree. The US govt and the inherent sinophobia of English-language medium are impediments. But these alone can't be inhibiting. After all Genshin Impact and TikTok aren't banned yet. And Chinese cultural products still find a lot of markets. Look at Wandering Earth 2 for example. A lot of people watched it. There are many other problems. It will be a lib argument but yes, excessive censorship is a problem. Political censorship is normal. But things like green blood and arbitrary bans on gaming are ridiculous. Just read Chinese software engineers' posts on social media. Most will tell you how the government effectively killed single player game industry in the early 2000s. Tencent and similars didn't focus on cheap mobile games for no reason.
Anyway, it seems like a shift is happening towards allowing and pushing for more games recently
