China Proposes Bill to Limit Smartphone Use for Children and Adolescents
The China Cyberspace Office (Cyberspace Administration of China, Cac) has proposed a bill that recommends limiting the time spent on smartphones by children and adolescents under 18 years of age to two hours a day. This proposal has resulted in a significant decline in shares of Chinese technological companies. (Source: CAC)
In addition to the time limit, the bill suggests the introduction of special features, known as “minors,” on smartphones manufactured in China. These features would enable blocking internet access for users under 18 years of age from 22:00 to 6:00.
The proposed distribution of time limit based on age is as follows:
- 16-18 years: 2 hours a day
- 8-16 years: 1 hour a day
- Children under 8 years: 8 minutes a day
It is important to note that parents have the option to opt out of these restrictions for their children.
Following the announcement of the bill, there has been a sharp decline in the value of shares for major Chinese tech companies. Bilibili and Kuaishou have experienced a decrease of 6.98% and 3.53% respectively, while Tencent Holdings, the operator of WeChat social network, has seen a drop of 2.9%.
This decline in share value comes as a result of the potential significant consequences the proposed changes may have on companies providing internet services and mobile applications. The limitations are expected to decrease user activity, particularly among the younger demographic, which is a critical target group for most technological platforms.
The reduction in time spent on the internet can lead to a decline in advertising income and other monetization sources for these companies. Furthermore, additional costs may arise from implementing and complying with the new rules and restrictions, including the development and maintenance of the “minors” features and other technical solutions.
All of these factors contribute to the uncertainty for investors, who may choose to sell their shares in these companies, thereby causing a decrease in their market value.
It is worth mentioning that in August 2021, China implemented stricter measures to combat gambling among children and adolescents. These measures included restrictions on the amount of time individuals under the age of