China losing in the WTO
Friday, August 28, 2009 at 1:27AM ARTICLE: W.T.O. Rules Against China's Limits on Imports, By KEITH BRADSHER, New York Times, August 12, 2009
Good sign:
HONG KONG -- The World Trade Organization gave the United States a victory on Wednesday in its trade battle with China, ruling that Beijing had violated international rules by limiting imports of books, songs and movies.
The W.T.O. panel decision in Geneva buttresses growing complaints from the United States and Europe that China is becoming increasingly nationalistic in its trade policies. It also offers some hope that China will remove its restrictions on media and reduce rampant piracy of intellectual property, though the country can appeal.
But even if China changes its policy in light of the decision, Western companies could struggle to increase their sales anytime soon. The ruling does not affect a quota that caps at 20 the number of foreign films that can be released in Chinese movie theaters each year.
Dan Glickman, though, Hollywood's top lobbyist, thinks the decision will doom the quota eventually.
The larger importance of the decision:
The ruling goes to the heart of one of the biggest trade issues pending between China and the West: whether intellectual property, like copyrighted songs, books and movies, should be granted the same kind of protection from discriminatory trade practices as manufactured goods.
China has lost WTO rulings in recent months, and hasn't yet changed its policies on either, so we'll wait and see how this one goes.
The point is, the system is working like it's supposed to.
Reader Comments (1)
not if "China has lost WTO rulings in recent months, and hasn't yet changed its policies..."