United States is bound to file WTO case against China over movie and book copyright piracy, disclosed by a high ranking officer.

As the source quoted, the US’s government officials are preparing case files for 2 potential lawsuits against China. One related to the widespread music and film copyright piracy in China which costs huge money of  US corporations to deal with. China government is also claimed to apply measures to restrict the distribution of foreign music, films and books of foreign cultural works in the mainland. Lobbying groups in the US who represent most seriously affected companies, namely Microsoft, Walt Disney and Vivendi SA, have estimated their loss due to the copyright violations in China over 2.2 billion dollars. It turned out that challenges are lying ahead the trade relationship between China and the US while both countries are important partners to each other and have great influences in the global trade.

In March 30th, the US Department of Commerce announced the preliminary decision in applying anti-subsidy law with CFS product from China. Right after the announcement, China’s Ministry of Commerce held a press conference to show their objection. "This action of the US side goes against the consensus reached by the leaders of both countries to resolve differences through dialogue," Commerce ministry spokesman Wang Xinpei said.


In March 31st, Financial Times UK quoted the an government official as saying that President Bush government intended to set up legal frame allowing US companies to request for penalty tariff imposition on products which are considered to be subsidized by Chinese Government.

It appeared that many Chinese producers would suffer from this new regulation, particularly steel and consumer goods sector. Those products have long been considered by Washington to be subsidized by China government through preferential loans as well as other subsidies.

Many US economic experts reckoned that this new regulations will help protect US producers and citizens against flows of cheap products from China. In the meantime, Chinese producers will seriously suffer from such barrier and face more difficulties in entering US market.

There appeared to be more challenges ahead in trade relation between the two giants.