The ban, which has been in place since 2000, could lead to a huge sales boost for the leading consoles, Nintendo's Wii, Microsoft's Xbox and the world's best-selling machine, Sony's Playstation.
The WSJ report says that China’s gaming market is estimated to be worth $22.2 billion this year, according to gaming research firm Newzoo BV.
The new rules, which were announced by the Ministry of Culture, mean all foreign and domestic consoles can be manufactured and sold anywhere in the country. Previously, only consoles made in Shanghai's Free Trade Zone under a pilot scheme could be sold in China, but sales have been small in relation to the potential size of the market.
This story was originally published by The Hollywood Reporter.