China appeals WTO ruling against media restrictions

Hollywood's long-running battle to pry open the vast Chinese market suffered another setback Tuesday. China has appealed a ruling by the World Trade Organization that it broke international rules by restricting imports of movies, music and books. The ruling, issued last month, stipulates that Beijing cannot force foreign media companies to distribute their content through Chinese state-owned entities that have a monopoly over the market. That was a victory for major Hollywood studios and others who have been frustrated for years over limited access to the Chinese market. But in its appeal, China contended that the WTO panel "committed errors of law and legal interpretation in concluding that none of the measures are necessary to protect public morals." The Motion Picture Association of America, the trade group representing the six major studios, expressed disappointment. "The initial decision was a significant win for the U.S. film industry, and we are confident that the U.S. position will prevail, again, as the appeals process unfolds," MPAA Executive Vice President Greg Frazier said.