WTO win could open China’s door to U.S. firms

GENEVA (AP) — The World Trade Organization backed the United States on Wednesday in a major trade battle with China, issuing a ruling that could ease tight controls and open markets for U.S. makers of everything from DVDs to books and music downloads.

The decision came down decisively against Beijing’s policy of forcing American media producers to route their business through state-owned companies. It will not yield immediate revenues in Hollywood or Silicon Valley, and it may take sanctions — or the threat of them — to force China to ease access for U.S. companies to the world’s largest marketplace.

U.S. Trade Representative Ron Kirk said the decision will help “level the playing field for American companies working to distribute high-quality entertainment products in China.”

The case could have worldwide ramifications as it sets a precedent for how China is allowed to manage and control foreign manufacturers and service providers.

The country’s rigid restrictions have been a key gripe of Western powers, who have complained that China’s rapid rise as a trade power has been in part aided by unfair policies that boost sales of Chinese goods abroad while limiting the amount of foreign products entering its own market.

While the ruling was seen as an important first step, U.S. content companies say it will take a renewed push to clamp down on piracy to have a meaningful impact.

The WTO decision comes as President Barack Obama is being pressed to get tough on trade rules with China, which many Democrats in the U.S. Congress blame for America’s soaring trade deficit and lost manufacturing jobs.