The World Trade Organization has formed a panel to probe China’s protection of intellectual property.
Move follows a complaint lodged by the U.S in April with the Geneva body concerning piracy in movies, music and publishing (Daily Variety, April 11).
Establishment of the panel means that informal talks between the two parties have failed.
Lu Xiankun, a Chinese trade official, said that the U.S. legal action was regrettable and that China would defend its interests through the WTO. He said that China resented U.S. attempts to impose regulations that go beyond WTO requirements.
Unless there is a sudden breakthrough, the formal establishment of a disputes panel means that the two sides could be locked in a legal dispute for several years. Panel decisions can lead to heavy fines or trade sanctions.