Seems the Chinese government is serious about controlling all it can. (Duh!)
Seems all those Chinese gamers playing World of Warcraft were engaged in an illegal activity. (NetEase gets China non-approval notice)
NetEase should not have been surprised at the action. More than once companies operating in China have found that even though they may have been following all the rules for operating in one area, they can still get hammered from another agency with a completely different set of rules.
To my mind the issue for the Chinese is not making sure NetEase follows the proper rules for a business. The real concern — I will bet — is that WoW allows for interaction between WoW players around the world. Having unfettered communication with others is just not something the rulers in Beijing are willing to accept. Even in a game.
And then, if you really want to get paranoid, WoW is a simulated war. You don’t think someone in Beijing thinks “enemies of the state” will use WoW to destabilize the country?
Really, it all comes down to access and freedom of access. And this is just something the ruling elite in China has a hard time understanding and allowing.