China may appeal a ruling by the World Trade Organization (WTO), which ruled that China's practices when it comes to importing and distributing foreign movies, music and written material, were inconsistent with international trade rules, and that China needs to revise them.

China Daily writes that the ruling would break up a monopoly of two State-owned firms as the sole foreign audiovisuals importers.

Already two years ago the US filed a complaint about the limitations for foreign film on the Chinese market. The ruling, if approved by WTO, would adversely affect the two importers of foreign films. But other companies hailed the ruling.

"It is good news for private companies. We would like to join in. The game was unfair, but I believe complete competition is coming," said Wang Zhonglei, president of Huayi Brothers, China's leading privately owned media company.

Under the WTO framework, the US and China must decide within two months whether to appeal any part of the ruling.

"We will carefully evaluate the report," the ministry said.

Up until now, the Chinese government has appointed China Film Group and Huaxia Film Distribution to import and distribute audiovisuals from abroad. A lot of foreign films never make it to China because of the limited import industry.