WTO Rules Against China
The World Trade Organization Monday upheld a ruling that China is illegally restricting imports of U.S. music, films and books, the Associated Press reported. The WTO's appellate body struck down China's appeal of an August ruling against China's policy that forced U.S. media producers to use state-owned companies to distribute foreign entertainment products and imposed other restrictions on such items.
"The appellate body's findings are key to ensuring full market access in China for legitimate, high-quality entertainment products and the exporters and distributors of those products," U.S. Trade Representative Ron Kirk said in a statement. "U.S. companies and workers are at the cutting edge of these industries, and they deserve a full chance to compete under agreed WTO rules. We expect China to respond promptly to these findings and bring its measures into compliance."
According to the USTR's office, U.S. movie, music and publishing firms raised several objections with the Chinese restrictions on the distribution of foreign entertainment products. The restrictions included prohibiting foreign firms from distributing certain reading materials and banning distribution of music electronically.
Among the arguments China made in defending its restrictions before the WTO appellate body was that its importation restrictions of the products at issue "are justified by an exception related to the protection of public morals" and that its commitments related to the distribution of music did not cover electronic distribution of music, the USTR said. If China fails to bring its laws into compliance with WTO rules, the United States can ask the WTO to authorize commercial sanctions against China, the AP reported.
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