Raising impossible barriers against foreign commerce in order to protect domestic industry is among the oldest sources of international friction, and China is no exception. But a recent ruling reveals that the industry China is protecting is piracy. By severely restricting imports of American books, music and movies, China extends an umbrella of protection over institutionalized theft of intellectual property.

Don’t take our word for it. Take the word of the World Trade Organization, which has just ruled that Beijing has violated international trading rules. Or you can take the word of the New York Times‘s Keith Bradsher, who writes, “One reason for the slow growth in imports has been China’s restrictions on imported books and other content. Demand is met by pirated copies made in China; the latest Hollywood movies are on DVDs on street corners across China within days of their release, for $1 or less.

Also, because of piracy, Chinese consumers are so accustomed to paying very little for DVDs, or downloading movies or songs free on the Internet, that American movie companies already sell authorized DVDs of their movies for much less in China than in the United States — and still struggle to find buyers.

US trade organizations and commercial exporters of books, songs and films hope that the WTO’s ukase will open the door to direct sales to the consumer. Don’t bet on it. China will undoubtedly employ a tried and true tactic for keeping that door shut: “’They’ve got a poor record of compliance,’” Bradsher quotes a Washington lawyer. ‘”They keep filing appeals.’”

Details in W.T.O. Rules Against China’s Limits on Imports

RC

Every Blogger owes a debt of gratitude to newspapers and magazines. This posting relies on original research and reporting performed by the New York Times.