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  Table of content    
  1. #1. China Banned Steam: Full Story
  2. #2. The Reasons Behind
  3. #3. China Eventually Forbade Steam

China Banned Steam: The Comprehensive Story

Regarding China's strict regulations regarding the approval of video games, Steam has operated on the fringes of the law without ever incurring the government's ire. However, many have speculated for some time that it will be prohibited, especially after Valve and Perfect World released Steam China to a small audience. This may be occurring at this time. Maybe. Eventually, China banned Steam.
The controversy began on Christmas Day when some claimed Steam was no longer accessible from within China due to the Great Firewall's blocking of several foreign websites. However, the truth is more nuanced.

#1. China Banned Steam: Full Story

china banned steamAccording to online sources from the 25th of December, 2021, the Steam website and community forums were blocked from China. Several people believed that authorities had effectively outlawed Steam worldwide. Subsequent reports suggested that 'DNS poisoning' was to blame for the store's inaccessibility, leading some to conclude that the problem was not censorship but rather an attack by malicious actors.
In China, however, the use of steam is not necessarily declining. It appears that access is spotty at best, with frequent instances of either complete inaccessibility or painfully slow operation. Many players can access Steam, while some have reported trying again or waiting a few minutes. Using a variety of Great Firewall testing tools, you can see for yourself the discrepancy: some will rapidly declare it's blocked, adding fuel to the fire that is the ban theory, while others, with more patience, can show you it loads sometimes, or after a considerable delay.

#2. The Reasons Behind

Source: Steam
Also mentioned by the game developer was a Twitter thread by one David Frank, who blamed improper use of Server Name Indication (SNI) Detection for the observed problems. As he describes it, it seems like a purposeful attempt to disrupt Steam, and the fact that it only occasionally succeeds could be a deliberate cover-up.
The Chinese government rarely releases a public list of blocked websites, leaving the public in the dark. They generally interfere with sites and services and utilize various techniques rather than completely blocking them. This means that we have no idea what is happening at the moment. Many believe this is the beginning of an effort to censor Steam and force users to switch to the local version. China not only banned Steam, historically, they also banned several famous celebrities.

#3. China Eventually Forbade Steam

china banned steamEverything in Steam China has been fine. In February 2021, Valve and Chinese publisher Perfect World released a streamlined version that was only compatible with a small selection of games greenlit by Chinese regulators. There are more than 63,000 titles available on Steam worldwide, but only 53 are available on Steam China. Furthermore, authorities have reportedly ceased approving new games for some time, with no games being greenlit since July 2021.2 (not just for Steam, for any games). There are valid reasons for people to want Steam itself.
Simplified Chinese is the second most popular language on Steam, behind English, which suggests that Steam is rather popular in China. However, exact data are hard to come by. According to Valve's data, about 25% of players speak Simplified Chinese. Many people could lose access to games or use VPN apps, which is a major financial worry for creators.
 
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