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Regulating Online Games in China: Policy, Practice, Innovation, and Change Stephanie Lara Arnason Doctor of Philosophy Chinese The University of Edinburgh 2015 PhD – University of Edinburgh - 2014 Thesis Declaration I hereby certify that this thesis has been composed by me. All work, unless otherwise referenced, is my own. This work has not been submitted for any other degree or professional qualification except as specified. --------------------------------------- Stephanie Lara Arnason PhD – The University of Edinburgh – 2014 Abstract The policy and practice of media regulation in China is quickly evolving to cope with the regulatory challenges presented by the rapid development and convergence of new media technology. These challenges include the increasing economic power of international and private stakeholders within this space, as well as the constantly evolving uses of highly converged media. Online games are a central part of this evolving dynamic, which is characterized by strong tensions between producers and operators, government regulators, and users of online games. This research explores the changing dynamic of online games regulation in China as it responds to the forces of internationalization and privatization. It also seeks to identify critical issues for policy development in China that are raised by the new and innovative ways that this media is being used. It draws from and contributes to scholarship from a number of disciplines, but primarily approaches the research from a media studies and area studies perspective. The thesis is presented in five chapters. Chapter I begins with a discussion of emerging practice in online games and its wider policy implications. This is followed by a literature review and an explanation of the methodological approach, which included: case study methodology, participant observation, and key informant Interviews with policy, legal, and game industry experts in China. The core research is then presented in three chapters. Chapter II is a detailed contextual narrative that describes China’s online games policy and places it in historical perspective. Chapter III is an exploratory analysis of key institutions, stakeholder interests, and interactions that shape practical regulation of online games in China. Chapter IV presents a focused analysis and discussion of the gold farming case. The thesis concludes with a summary and discussion of research contributions in Chapter V. The final discussion highlights how the thesis contributes to knowledge in three key areas: new media in China, policy studies of China, and media convergence. PhD – The University of Edinburgh – 2014 Dedication To my parents: Thank you doesn’t begin to cover it. Thank you anyway. Without your persistent belief that I can do anything, I may not have dared begin. PhD – The University of Edinburgh – 2014 Acknowledgements This PhD was accomplished with the generous support of a number of people, institutions, and organizations. I am delighted to thank them here. It has been an honour and a privilege to work with my supervisor Natascha Gentz, whose support and advice throughout this project have been invaluable. Thank you for taking a chance on a Hispanic Studies major from Canada – I hope you’ll find it was worth it. I would like to thank my examiners, Michel Hockx and Daniel Hammond, for a viva that was as academically stimulating as it was fun. It is precisely this kind of conversation that keeps me researching. I would also like to thank Joachim Gentz, for engaging my academic and theoretical curiosity so well in my first year, and James Stewart, for constructive input at an early stage. Thanks to Frances, Jie, and Xin at the Confucius Institute for Scotland for their impeccable administrative support and a lively, dependable, and fun work environment. Thanks also to Julian Ward for your support and guidance in university teaching. This project would not have been possible without the generous help of the Overseas Research Students Awards Scheme and the Universities’ China Committee London. Special thanks also to the Edinburgh Fund whose Innovation Initiative Grant supported me in founding a Virtual Worlds Research Network, which allowed me to find and collaborate with scholars from around the world. I am grateful to the Confucius Institute for Scotland for making the network as international as possible by supporting a participant from China to attend the inaugural conference. To Louise Connelly, my co-founder, for helping to make the VWRN a reality. I am also indebted to those at CUHK for inviting me to the New Directions in the Development of the Creative and Media Industries in China conference, and the COST Action IS1202 for funding my attendance at the Training School on Virtual Work. I could not have attended these events without their support. This project would equally have not been possible without a robust support network of family and friends. Special thanks to my parents for support in countless ways. Thanks to my father in particular, who let me talk to him about my thesis: our conversations helped me to overcome writer’s block more than a few times. Equal thanks goes to my mother for not asking me about my thesis progress. It is a gift whose worth only other doctoral candidates can know. Thanks to all other family and friends that have offered support, each essential in their own way. To the Dores, who welcomed a nomadic academic into their home. To all the other flatmates over the years who offered support, friendship, and food: Sarah, Corin, Emma, and PhD – The University of Edinburgh – 2014 Elspeth. Thanks to Mabel, Freyja, Brock, Meredith, and Nicola, for their long-distance presence and moral support. The online community at Rainwave has been good company on late nights at the library. Emma and Luke: thanks for providing good company and good food during some of my most stressful moments. Particular thanks to Emma Worthington, who contributed logistical support for many unreasonable situations. Finally, I would like to thank the University of Edinburgh. The kind and generous support of staff at every level have made the University a real home to me throughout all of my postgraduate work. The administrative staff at the International office and LLC have helped me successfully navigate the increasingly absurd demands of UK V&I. My fellow students have organized a lively community that brought me out of writing isolation, even as I was still writing. George, Liv, Qianwei, and everyone else from the PhD office at LLC: thank you for keeping me grounded. Special thanks to the Principal, whose efforts to inspire and unite the academic community here have made me feel part of something bigger and more important than my individual research project. This seems to me the essence of the Academe and I feel extremely fortunate to be able to be part of this institution. To those who agreed to be interviewed for this project, I am very grateful. Your responses were invaluable and I appreciate your openness and generosity of time. PhD – The University of Edinburgh – 2014 Table of Contents ABSTRACT ....................................................................................................................................... III DEDICATION .................................................................................................................................... IV ACKNOWLEDGEMENTS .................................................................................................................... V TABLE OF CONTENTS ........................................................................................................................ 1 LIST OF ABBREVIATIONS .................................................................................................................. 3 CHAPTER I: INTRODUCTION AND METHODOLOGY ........................................................................... 4 INTRODUCTION AND BACKGROUND ............................................................................................................ 4 LITERATURE REVIEW ................................................................................................................................ 7 METHODOLOGY .................................................................................................................................... 29 CHAPTER II: POLICY ........................................................................................................................ 58 HISTORY, CHALLENGES, AND RECENT DEVELOPMENTS IN CHINA'S ONLINE GAMES POLICY ENVIRONMENT ............. 58 REGULATORY CHALLENGES .....................................................................................................................