China Eyes Appeal of WTO Ruling

WASHINGTON/BEIJING: The Chinese government is considering an appeal of yesterday’s ruling that classifies its restrictions on the import of movies, music and books as being in violation the World Trade Organization’s (WTO) global trading rules.

Bloomberg cites Commerce Ministry spokesman Yao Jian as saying: “China will evaluate the WTO ruling, while not ruling out the possibility of appealing against that ruling.”

The WTO said yesterday that China broke international trading rules by restricting the importation of copyrighted media products. The organization wants China to allow distributors to be able to make their products available on the mainland without having to go through state-owned entities.

Dan Glickman, the chairman and CEO of the Motion Picture Association of America (MPAA) hailed the WTO’s decision, calling it a "major victory" in Hollywood’s efforts to open up the Chinese movie market. "The decision points a way forward that will begin to even the playing field in this important market." He added: “The Chinese system for distributing U.S. films to Chinese audiences is among the most restrictive and burdensome in the world. After years of pressing the Chinese to ease these barriers it is potentially promising that the Chinese government has now, in its own words, indicated that a pathway does exist to ensure that U.S. films are treated in a more even-handed manner and more in line with accepted commercial practices. This decision, coupled with the recent announcement from the State Council that the Chinese government intends to lower market access thresholds for the cultural industry, may be an opening we have been seeking. This ruling will complement our strategy to fight movie piracy in China. In spite of all the restrictions we face, there is no shortage of U.S. filmed entertainment in China. Unfortunately, far too much of it is pirated, benefiting neither the legitimate Chinese businesses that are tied to and profit from showing U.S. movies nor, of course, the U.S. companies that are playing by the rules. This ruling represents a positive step in promoting the growth of legitimate U.S. movies in a market that is growing rapidly, and with great potential."

The International Film & Television Alliance (IFTA) also praised the move. Jean M. Prewitt, the organization’s president and CEO, said: “The report issued today is important progress in the effort by independent film and television producers and distributors to gain better access to the Chinese marketplace. The panel’s findings and the anticipated changes to Chinese law and practices will create new distribution opportunities for independent films and television programming. We also firmly believe that China will benefit from increased investment in its distribution infrastructure and enjoy a wider range of entertainment programming resulting from a more competitive and open marketplace.”