China Loses Appeal of WTO Ruling on U.S. Books, Films

From Bloomberg:

World Trade Organization judges rejected a Chinese appeal of a ruling that held its restrictions on the sale of books, films and music from the U.S. illegal.

The 183-page decision, issued today by the WTO’s Appellate Body in Geneva, may force China to liberalize imports or face possible sanctions.

It followed an Aug. 12 finding by a WTO panel that China violated free-trade commitments by requiring importers to channel foreign publications and audiovisual products through state-run companies. The panel urged China to allow foreign companies to sell music over the Internet, which would be a boon for Apple Inc., with its iTunes software.