China's Cyberspace Regulator Imposes Smartphone Curfew for Minors, Tech Stocks Plunge

To combat internet addiction and protect the well-being of its young citizens, China's Cyberspace Administration of China (CAC) has proposed strict regulations limiting smartphone usage for minors under 18.

Reuters reports that these new rules, which will come into force on September 2 following a public consultation, have sent shockwaves through the tech industry, causing shares in Chinese tech firms to tumble.

Smartphone Restrictions for Young Users

Under the proposed regulations, children between the ages of 8 and 16 will only be allowed to use their smartphones for one hour a day, while those aged 16 to 18 will have a maximum allowance of two hours.

Shockingly, children under eight years old will be restricted to a mere eight minutes of smartphone use daily. To enforce these time limits effectively, the CAC urges smart device providers to implement "teenage mode" programs, blocking users under 18 from accessing the internet on their mobile devices between 10 p.m. and 6 a.m.

News18 says these measures aim to combat rising concerns over myopia and internet addiction among young people. The Chinese government believes that limiting screen time and encouraging healthy internet habits will improve the well-being of its youth and foster a positive online environment.

Tech Stocks Tumble

The announcement of these new regulations immediately impacted the stock market, with shares in prominent Chinese tech companies experiencing a significant downturn.

For instance, Bilibili and Kuaishou, popular video-sharing platforms, saw their shares plummet by 6.98% and 3.53%, respectively. Tencent Holdings, the company behind WeChat, was not immune, with its shares closing 2.99% lower.

Xia Hailong, a lawyer at the Shanghai Shenlun law firm, explained that implementing these rules would present a challenge for internet companies. "A lot of effort and additional costs will be required to properly implement these new regulatory requirements," he said.

"And the risk of non-compliance will also be very high. So I believe that many internet companies may consider directly prohibiting minors from using their services."

The CAC's proposal builds on its previous efforts to protect minors online, including age-appropriate content filtering and measures to reduce the spread of harmful information. While these restrictions may be among the most stringent in the world, the CAC emphasizes that parents can still opt out of the time limits for their children.

This announcement comes after intense regulatory scrutiny of China's tech industry. With signals from Beijing suggesting an end to the years-long crackdown on technology companies, the new rules have caught many industry players off guard.

However, this move highlights the government's commitment to protecting young people and promoting responsible internet use while continuing to support the development of tech giants.

This is not the first time a government has imposed a smartphone curfew for minors. In 2014, the education board of a Japanese city introduced a similar policy for junior high school pupils.

Students were encouraged to surrender their phones to adults between 10 p.m. and 6 a.m. However, there were no penalties in place for those who disobeyed the curfew.

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