Feb. 16, 2007 (China Knowledge) – The U.S. is considering whether to take legal action against China for piracy at the World Trade Organization, a top U.S. trade official said on Thursday.

Deputy U.S. Trade Representative Karan Bhatia said at a House of Representatives hearing on China trade issues that negotiations with China over this issue and holding off the case have proved to be unsuccessful.

Bhatia also said that the U.S. government withheld a WTO complaint against China over video and music piracy last October because Beijing said it wanted more time to resolve the matter bilaterally, but no settlement has been reached.

It is estimated that U.S. software, music and book publishers lose billions of dollars of sales annually in China because of piracy. It is also reported that Chinese sales of counterfeit drugs, auto parts and other goods are affecting American businesses.

If the WTO were to rule against China, the U.S. could seek authorization to impose retaliatory tariffs on Chinese imports.