I suspect that on this forum there would be a mix of opinion about if that is a good idea or not. I mean, personally I think it should be up to parents to manage this, but I can totally see how some would have the opposite opinion about it. I don't think it's totally out of bounds as a concept for government to regulate this.
I have seen plenty of people calling for laws regulating mystery boxes for example on this very forum, and you could have the exact same parental responsibility argument there too.
The main difference is that in the US, were such a law passed, then tech companies would do some minimum amount of compliance such as requiring that you send a picture of ID or some such and then call it done. If minors manage to get around that by getting photos of their parents ID, well, what is a company to do?
In China the government doesn't care about your excuses. Children are playing your game anyway? Well, we are shutting you down then.
The result is this kind of thing.