Didn't the CCP restrict children to 1 hour of social media/gaming per day?
I am not intimately familiar with this regulation. It's possible they passed a regulation like that, but again, this would exclusively affect multiplayer titles. A rule like that would be pretty much unenforceable for singleplayer titles (unless, say, they have some sort of always online DRM that locks you out of your game after 1 hour of play time).
How much gaming does the average adult do in China?
None of the people I met would qualify as "hardcore gamers" by any stretch of the imagination, so I have next to no anecdotal evidence here. I'd say most adults limit themselves to playing on their smartphones. I never saw anyone play a game on a PC here (however, I didn't go out of my way to find people who do, either). I once saw a group of elementary school-age kids play PlayerUnknown's Battlegrounds on their smartphones, that was basically the pinnacle of what I saw in China, gaming wise. I also once talked to a guy who worked at a company making mobile games who was hoping to break into the PC gaming market. When I asked him why he'd want to leave the mobile market and how that would seem counterintuitive in a mobile-dominated market like China, he replied that mobile gaming is a dead end: As soon as your app reaches a certain level of success, you're bought up by Tencent.
There you go. Like my old teacher said: "That doesn't answer my question, but it's valuable information nonetheless."