Chinese video game developers arrested in South Korea
Posted On July 14, 2021
China’s state-owned media has published a report that shows more than 40 development companies have been arrested in the country in recent months for alleged violations of labor laws.
The report, published Monday, comes amid a nationwide crackdown on foreign investors in Chinese gaming studios.
The article does not say what specific violations the companies are accused of, but it says that some were charged with the theft of intellectual property rights and other violations of Chinese labor laws, according to the Wall Street Journal.
It’s unclear if the companies have faced charges related to their products.
The Chinese government did not respond to a request for comment.
China’s top gaming developer, Tencent Holdings Ltd., was among those cited in the report.
A spokesperson for the company did not immediately respond to CNN’s request for clarification.
The Wall Street Report also noted that some companies have allegedly engaged in “unlawful activities” that have led to the arrest of some of the companies’ employees.
The report did not name the companies or say whether any were arrested in connection with those alleged activities.
The government, however, is trying to crack down on foreign gaming companies that it alleges have been exploiting China’s labor market, and it has stepped up investigations into foreign companies that do business in China, the report said.
The arrests come as Chinese companies have ramped up their efforts to compete with domestic and foreign competitors in a market that accounts for almost 90 percent of China’s global GDP.