"Internet-addicted teenagers" account for around 10 percent of China's Web users under the age of 18, the Beijing Times said, quoting Li Jianguo, a vice chairman of the standing committee of the National People's Congress, or parliament.
The committee has called for stricter monitoring of Internet games that have illegal or inappropriate content, the report said.
It has also said games should include technology that automatically logs players off once they exceed a set number of hours of continuous play.
"Unhealthy" games by Chinese government standards could refer to those featuring violence and pornography as well as "unpatriotic games" that make Chinese soldiers or agents the enemy.
The government has tried various measures to regulate the booming online gaming market and curb teenagers' use of Internet games.
In 2006, it ordered all Chinese Internet game manufacturers to install technology in their games that demands players reveal their real name and identification number.