Mobile app stores in China, such as Tencent Holdings and Xiaomi, are now preventing app publishers from launching new apps if they do not provide all the necessary information required by authorities.

This action is taken in compliance with new rules that were introduced last month as part of Beijing's tightening of mobile app oversight. The new regulations mandate mobile app publishers to provide their business information to the government and require app stores in China to establish filing systems to monitor new apps, with a deadline set for the end of August. It necessitates all global apps on these app stores to either create a local entity or collaborate with a local partner.

Why does it matter?

The implementation of the new rule has caused concern within the industry, given that publishing apps in the world's second-largest economy will become increasingly difficult, and many apps may be removed. It will also adversely impact small developers. The recent regulation further indicates that despite the conclusion of a prolonged and comprehensive regulatory crackdown on China's technology sector, the industry is still under scrutiny as the Chinese government aims to ensure that business activities align with its principles.