China will not allow any more internet cafes to open this year, according to a government order obtained by the state news agency Xinhua.
The notice, issued by 14 government authorities, also vows to crack down on gambling through online games.
Xinhua said the new restrictions were part of a campaign to combat the rising problem of internet addiction.
Internet cafes that have already been given approval must be completed by the end of June, the news agency reports.
There are currently about 113,000 internet cafes and bars in China, according to the country"s Ministry of Information Industry.
China has already banned minors from such cafes, and levies heavy fines on operators who flout these regulations.