"Yes we have appealed this morning," a Chinese diplomat told AFP, referring to the dispute raised at the WTO by the United States in 2007.

The WTO's dispute settlement panel in August found that China was breaching international trade rules by blocking foreign-owned companies from acting as importers and wholesalers of films, music and printed material.

It therefore asked Beijing to conform to global trade rules on the matter.

The United States had claimed overall victory in the dispute, which also affects Hollywood blockbusters.

US Trade Representative Ron Kirk in August said the WTO findings were "an important step toward ensuring market access for legitimate US products in the Chinese market, as well as ensuring market access for US exporters and distributors of those products."

But China's Commerce Ministry spokesman Yao Jian stressed in August that China had "conscientiously carried out its obligations under WTO rules in terms of access to the publishing market" since it joined the WTO.

"There have been absolutely no obstructions in the channels for letting foreign publications, films and music enter into the Chinese market," he said.

Yao also said it was "improper that (the panel) did not reject the US request for the right to trade and distribution channels of printed material, audio-visual products and films."

He said the Chinese cultural sector, which includes the film industry, had suffered a "huge" trade deficit, arguing its competitiveness was still weak.

"Against this backdrop, I think it is appropriate and just for China to impose some controls that are in line with the country's economic development stage and cultural and historical tradition," he said last month.

The question of foreign access to China's media market has been a bone of contention for years.

Every year, China allows up to 70 foreign film to be shown in local movie theatres, according to a statement the State Administration of Radio, Film and Television issued in 2006.

"Distribution of foreign films remains highly restricted, with some internationally top grossing movies unauthorised for domestic distribution," the American Chamber of Commerce argued in a white paper earlier this year.

"China stands to gain from greater film distribution in many ways, including better development of the indigenous film industry and reduction in demand for pirated movies as legitimate access to international titles is increased."

China and the United States have been locked in several high profile dispute cases since the China joined the WTO in 2001.

This month, China brought a case against the United States against a punitive tariff hike on China-made tyres.

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