China unhappy over US WTO complaint

The US will file two new trade cases against China today, over copyright violations and restrictions on the sale of American movies, music and books.

According to AP, US Trade Representative Susan Schwab said that American companies were "losing billions of dollars annually from piracy levels in China that 'remain unacceptably high'".

One of the cases that Washington will file will argue that China's lax enforcement of copyright and trademark protections are in violation of WTO rules, while the other case will focus on how Beijing has erected WTO-illegal barriers to the sale of American movies, music and books in China.

The Bush administration is under pressure to address the soaring trade deficit with China, which in 2006, was at 173.3 billion euros, the highest ever with a single country.

According to Xinhua, Beijing expressed "great regret and strong dissatisfaction" at the US decision to file the new trade cases.

Wang Xinpei, a spokesman with the Ministry of Commerce, said that the decision was contrary to agreements reached by the leaders of both nations to strengthen bilateral economic and trade ties and solving trade disputes.

"The Chinese government has always been firm in protecting intellectual property rights and has attained well-known achievements," Wang was quoted by Xinhua.

Wang also emphasized that the new trade cases will negatively affect bilateral economic and trade ties.

AP reports that the US decision to file the complaints were met with differing reactions by the American business community. While the Motion Picture Association of America and the Recording Industry Association of America were pleased with the action, some other industries were concerned that the aggressive action could lead to retribution from China.

After the complaints are lodged with the WTO, there will be a 60-day consultation period which will allow trade negotiators from both countries to resolve the dispute. If they fail to reach an agreement within that time period, WTO hearing panels will be convened. If the US wins the case, it will be allowed to impose penalty economic sanctions on Chinese products.