China’s video game market returned to growth this year as domestic revenues rose 13 percent to 303 billion yuan ($42.6 billion), putting behind Beijing’s eight-month crackdown two years ago.

Industry association CGIGC said at a conference in Guangzhou on Friday that industry revenues this year surpassed 300 billion yuan for the first time. It also said the number of gamers in China rose 0.61 percent to a record 668 million, more than the entire population of North America.

The return to growth was a major turnaround for the world’s largest gaming market after China’s gaming revenues fell for the first time last year following Beijing’s 8-month crackdown on the industry over gaming addiction issues.

Games developed in China continue to grow as Beijing emphasizes the need for self-sufficient technology development. Annual revenue from home-grown games rose to 256 billion yuan, up 15% from the previous year.

However, revenue from sales of Chinese games in overseas markets has fallen after countries such as India tightened controls on them for national security reasons. China’s revenue from overseas games fell 5.65% to $16.3 billion in 2023.

Chinese anime-style games such as miHoYo’s “Genshin Impact” have gained popularity and increased revenue, with anime-style games on smartphones growing 31% to 31 billion yuan this year from last year.

The recovery of China’s gaming industry is reflected in the fact that Chinese gaming giant Tencent returned to growth this year after its first-ever revenue drop last year.

Tencent’s rival NetEase has also had a strong year, with its shares up more than 40% this year thanks to gaming hits such as “Egg Party.”