The government should not be acting as parents or legal guardians for adults. It is one thing to determine how long your own child can play game(s), however, when you reach adulthood it is your own responsibility to control your habit, not the government's.
In the US, adults are free to police themselves when it comes to games, any regulation against it, would be against the very essence of the bill of rights and what the country is supposed to stand for. The government already reaches too far into our personal lives in my opinion, this would go even further.
However, China is not the US. If this is what they wish to do to their citizens, then that's their perogative. I'd probably leave the country as soon as possible, if I lived there that is, but to each their own. If the people do not like it, then they should stand up for what they believe is right.