The country will not allow new Internet bars to open this year to prevent juvenile crime and addiction, according to a directive issued yesterday.

"In 2007, local governments must not sanction the opening of new Internet bars," said the notice by 14 departments that include the Ministry of Culture, the State Administration for Industry and Commerce and the Ministry of Information Industry (MII).

"Bars that have received approval prior to the issuance of this notice need to be set up before June 30, 2007," it added.

There are currently about 113,000 Internet bars in China, according to MII figures.

The notice comes as lawmakers at the annual session of the top legislature, the National People's Congress, called for stricter regulations to keep teenagers away from Internet cafes.

"It is common to see students from primary and middle schools lounging in Internet bars all through the night, puffing away on cigarettes and engrossed in online games," Xinhua quoted NPC deputy Yu Wen as saying.

Last year, a report from the China National Children's Centre, a government think tank, said that 13 percent of China's 18 million Internet users under 18 were Internet addicts.

The notice reiterated that Internet bars not allow those under the age of 18 or face stiff penalties.

Internet bars that are found to have allowed minors on their premises for a second time will be forced to close for 15 days and fined, it said, adding that after a third offence, the business license can be revoked.

Last year, the number of online gamers reached 31.12 million, up 18.5 percent from 2005.

The annual market revenue increased 73 percent to 6.54 billion yuan ($849 million) that year.

To strengthen monitoring of the industry, the authorities have asked local governments to adopt effective measures to crack down on online game gambling, China Business News reported.

One of the highlights of the latest directive is a ban on the flow of virtual currency to prevent online game operators from cashing in on game commissions or other illegal businesses.

Virtual currency is a voucher for exchange of goods among game players.

(China Daily 03/07/2007 page2)