China says it may appeal a ruling by the World Trade Organization involving a dispute with the United States over imported entertainment products.
A WTO panel ruled Wednesday that Beijing should revise rules that require U.S. media producers to route their business through Chinese state-owned companies.
The panel said the rules violate China's obligations under the WTO, which it joined in 2001.
A spokesman for the Chinese Trade Ministry issued a statement Thursday expressing "regret" that the panel did not reject Washington's complaint. The spokesman says China will "conscientiously assess" the ruling and will consider what action to take.
U.S. Trade Representative Ron Kirk welcomed the WTO panel's decision, calling it a significant victory for America's creative industries.
In a written statement, Kirk said it would "level the playing field" for U.S. companies and ensure legitimate U.S. products can get to the Chinese market and beat out pirated goods.
The ruling affects U.S. exporters and distributors of CDs, DVDs, music downloads and books.
China and the U.S. disagree on several other trade issues.
The U.S. International Trade Commission says increased imports of Chinese tires are harming U.S. tire makers, a claim Beijing denies.
U.S. President Barack Obama must decide by September 17 whether to follow the commission's recommendation to impose tariffs on Chinese tires for three years.
China's vice commerce minister, Fu Ziying, called the proposed tariffs protectionism on Wednesday, and said they would break WTO rules.
Some information for this report was provided by AP and Reuters.