US files two trade cases against China

Apr 9, 2007, 19:19 GMT

Washington - The United States is filing two complaints against China at the World Trade Organization (WTO) over copyright piracy and market access for foreign music, films and books, the top US trade official said Monday.

The US action further increases trade tension with China, which reflects growing pressure by US lawmakers on President George W Bush to get tough with Beijing.

China has taken steps to stem the burgeoning bootleg CD and DVD industry, but the US Trade Representative's Office (USTR) said laws still seem to 'permit large-scale piracy and counterfeiting.'

China's rampant copyright infringement of products such as Hollywood films have long been a point of friction with the US, even as the two nations have strengthened political ties.

The other US complaint attacks China's tight government control over foreign-culture imports, which USTR said 'denies US companies the right to import books, journals, movies, music and videos' and severely hampers distribution of home entertainment video products.

In both cases, the US is seeking dispute settlement talks under the WTO, the first step to resolve a conflict under the umbrella of the arbiter of world trade.

Bilateral talks on the piracy dispute have failed, but the US 'will continue to welcome dialogue with China in an effort to resolve these issues,' US Trade Representative Susan Schwab said in prepared remarks.

The Bush administration, faced with a growing sense in Congress that China is trading unfairly, has taken a tougher approach toward Beijing in recent weeks.

Recent US moves included a WTO complaint accusing China of illegal export subsidies and duties on China's shipments of glossy paper to the US, a warning signal that other Chinese exports could also face levies in future.

Americans' appetite for low-priced Chinese goods helped lift the US trade deficit with China to a record 233 billion dollars. The US is the largest overseas market for Chinese goods.