The dancers are known to blare old-school music from portable speakers, often taking over entire blocks in vibrant matching outfits.
In a set of guidelines released Monday, the country's central sports authority outlined "strict regulations" for square dancers, so named for their chosen venues as opposed to their dance style.
Dancers must not congregate in "solemn places like martyrs' cemeteries" or "use square dancing to illegally make money and spread feudal, superstitious beliefs", according to the new rules.
The notice, which updates regulations initially introduced in 2015, seeks to address persistent issues such as space constraints and noise complaints.
Also Read
For many of China's 222 million elderly aged 60 and over, dancing in public has become key to staying fit and staving off the loneliness of ageing.
But these retired women known as "damas" do not always have eager audiences: residents in some neighbourhoods have accused them of disturbing the peace, and they have had to square off with basketball players and other athletes for outdoor space.
The government has acknowledged the need for more public sports facilities in China, where the average recreational space per individual is less than one-tenth of that in the United States.
Meanwhile, Beijing is also looking to curb unsavoury behaviour that may spawn from the groups' tightknit nature.
This August, members of a debt-collecting "auntie gang" received jail sentences of up to 11 years for using gangster- like tactics to collect money or force people from their homes.
Disclaimer: No Business Standard Journalist was involved in creation of this content