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The Steam Deck is manufactured in China but cannot be sold there due to strict regulations governing foreign gaming devices. Companies must partner with local firms for distribution; Valve has not pursued this route for the Steam Deck.

Without a local partner, Valve is unable to engage the Chinese government for sales approval. The Nintendo Switch, which partnered with Tencent for distribution, faced challenges, leading to Tencent's expected withdrawal of support in March 2026 after poor sales linked to government restrictions.