Hollywood Sees Opening in Chinese Market

Wednesday's World Trade Organization decision in opposition to Chinese media protectionism may be good news for U.S. exporters, who have long complained that sales limitations and piracy have cost them money.

The WTO concluded that China's controls on the distribution of foreign media such as films, music, and DVDs violate trade rules, the Christian Science Monitor reports. China may file for an appeal in the latest of disputes with its largest trading partner, the U.S.

China's regulations on the distribution of media have long been a thorn in Hollywood's side. The limitations on U.S. content have opened the floodgates for piracy in China, which means less money for media makers.

However, while the ruling will require China to open up its borders on foreign media, which should profit US studios, the WTO will still allow China's two state-owned distributors to control profit sharing and quota on foreign films.

Currently only 20 film productions are allowed in one year.