Video Games Are The Next Front In US-China Tech War

The“go global” strategy for gaming has been further strengthened by broader policies implemented in 2021 , 2022 and 2023 , which aim to cultivate the development and international expansion of high-quality games that resonate with Chinese culture and values.

While the industry has had earlier successes with mobile gaming, Black Myth: Wukong is designed for the more expensive and prestigious console and PC gaming markets (which also require more advanced software and hardware). The success of the game has seen more money flowing into China's game industry to develop major projects .

China is the world's largest single market for games, but domestic restrictions such as censorship, limits on children's gaming time, and controls on in-game spending and gambling have curbed revenue for Chinese game developers. In response, they are looking to global markets.

Blockbuster game development can be a winner-takes-all business, and the high development costs mean resources typically concentrate among top companies. So it may be a long journey for China to emerge as a true leader in the global gaming market.

A critical barrier lies in hardware, particularly the supply of advanced chips – and the technological capabilities required to develop and produce them. This is the vital linchpin for digital China's global supremacy.

Chinese policymakers, tech companies, members of the gaming industry and gamers are acutely aware of the hardware bottlenecks resulting from the US-China tech war. Over the past two years, the US has imposed restrictions on the export of advanced chips to China.

While the restrictions are aimed at chips that can be used for AI, the same hardware is also needed for high-end games like Black Myth: Wukong.

The game is promoted by American chip company Nvidia, which leads the market in the graphics processing units (GPUs) needed for cutting-edge graphics and machine learning. Nvidia boasts it helped elevate Black Myth: Wukong's graphics and technology to the highest levels.

To experience the game's visuals in their full glory, a player will need a Nvidia GPU such as the RTX 4090, which costs upwards of A$3,000. Players must also prepare their PCs with various AI-powered“upscaling” technologies, such as Nvidia's DLSS or alternatives made by competitor chipmakers AMD and Intel.

Currently, the best GPUs and upscaling technologies are all manufactured by American companies, leaving Chinese game developers and players without domestic options.

China has made significant investments in its domestic chip-making capabilities. However, it is not yet competitive when it comes to the advanced chips needed for cutting-edge gaming, which are also useful for AI and military applications.

China has also targeted chipmakers in the Netherlands and South Korea, in line with its comprehensive national security strategy.

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Serious games

The realms of semiconductor microchips, computer gaming and national security are deeply intertwined. Nurturing the gaming industry will stimulate demand for advanced chips – which will create a market for increased manufacturing capabilities. Industry-driven, bottom-up initiatives will proceed alongside state-led, top-down investments.

It is no wonder Chinese state media and affiliated social media influencers have all been promoting the game . It is more than boosting the gaming industry or telling Chinese stories well (and thus encouraging Western players to learn more about Chinese culture and Chinese players to take pride in their own culture).

The game is part of China's strategic move to win the chip war by following Mao's teaching of“encircling the cities from the countryside.” The short-term focus on video games'“countryside” is for the long-term goal of taking over the“cities” of advanced chip manufacturing.

Haiqing Yu is professor at the School of Media and Communication, RMIT University

This article is republished from The Conversation under a Creative Commons license. Read the original article .

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