Mr. Yu Yongzhan, deputy director of the General Administration of Press and Publication, said recently that China will invest CNY 1-2 billion in the development of network games.

He also said approximately 50 enterprises had so far participated in the development of the "China National Network Game Publication Project" headed by such governmental bodies as the General Administration of Press and Publication, the Ministry of Culture, the Ministry of Education, the General Administration of Taxation, and the Development and Reform Commission.

According to Mr. Yu, network games have taken the place of electronic games as the most popular type of gaming, but China-developed games are lagging far behind their international competition. It is thought that this is the main reason why the government has decided to offer support to the industry.