Valve is launching its game platform Steam in China in partnership with local gaming company Perfect World. China is one of the largest gaming market and offers great amount of growth potential for Valve.
It is not the first time that Valve is partnering with Perfect World, earlier as well Valve had partnered with Perfect World to release its flagship games Dota 2 and Counter Strike:Global Offensive. Perfect World will run the promotions and distribution for the games in this partnership. China's current gaming market is as big as 30 billion dollars which puts it ahead of most developed countries like USA, Japan and UK.
One of the world's largest gaming company is Tencent which is a local Chinese Tech conglomerate led by its founder Pony Ma. Although the gaming industry in China has been known for PC gaming but lately there is a shift happening to mobile. And this shift to mobile is led by none other than Tencent.
Last year Valve had to endure the wrath of Chinese Internet Censorship when some of it's services were blocked in China. It wasn't a complete full blown blockage but rather a partial block, and the users reported that they were still able to buy the games from Steam.
Although Valve doesn't have any presence in China but about 1/4th of its users are Chinese, it means the company already has solid traction in the country. However, this entry won't be a cakewalk and Valve's Steam will face stiff competition from local Chinese Gaming companies such as Netease as well as Tencent with their Steam like platforms.