Well, overreaching and government surveillance aside, there is such a thing as addiction to gaming, and as with any addictions it’s an issue that affects society as such. The problem is that, as usual, they’re approaching the issue from the wrong angle.
Middle-class kids in China are being crushed under expectations to get the best grades, get a well-paying, upwardly mobile job, an appropriate partner, to eventually create a comfortable existence that allows them to take care of their parents. It’s a huge pressure at best and insane at worst, it often leads to burnout and that often leads to addiction, often to gaming in particular. This measure aims to prevent issues arising from that, but of course it’s not going to help because it doesn’t address the actual problems that they don’t actually want to change.