I can see China trying to strong arm Tencent and such even for their external subsidiaries, but so long as the products arent available in China without it being a version that has some kind of lock in place to enforce this rule, those subsidiaries should be fine - at least I'd think.It is so hard to say, at the moment it seems more like major gaming companies in China are attempting to appease regulators to prevent them from being hit by more regulation. Since what has been proposed is not legally binding, who knows if there will be any real bite to this latest crackdown, but it really does feel like the CCP wants to see demonstrable change this go around.
So far it is completely up in the air what will happen to the parts of the industry outside of China (e.g. Will Tencent/Netease/others be force to divest from companies outside of China? Will companies they own outside of China still be held to the proposals? etc.) That said, I could definitely foresee less games being published outside of China from the major companies. I just hope the Chinese indie scene can still find ways to operate as usual as there have been some amazing indies out of China.
If the worst case scenario does occur and China blocks outside PC platforms...yeesh, it could be a bleak next few years until things stabilize given how much the industry been able to grow due to expansion into China. I would say VPNs could offset, but those have also seen crackdowns from time-to-time. I suppose we will see within the next few months/years. I wonder if Steam China would make the cut?