China may appeal a ruling by the World Trade Organization (WTO) that would break up a monopoly of two State-owned firms as the sole foreign audiovisuals importers.

A WTO dispute settlement panel, in a report released yesterday, ruled that China's practices were inconsistent with international trade rules, and that China needs to revise them.

The US filed the case two years ago. The case involves publications, audio and video products, and music download services imported by China.