The US asked that the complaint be investigated by the WTO's Dispute Settlement Body but China blocked the move, as it is allowed to do under the global trade body's rules.

However, should the US renew its request at the next DSB meeting on November 19, it will be automatically adopted.

The case focuses on China's legal structure that prevents US companies in China from importing books, music, videos and other protected goods on their own and requires them instead to work through state-approved or state-run companies.

Washington has said China agreed to free up these trading rights for non-Chinese companies when it joined the WTO.

The US also believes these restrictions encourage illegal piracy of cultural goods and other violations of intellectual property rights.

China said it was "regretful" that the US had sought to bring the case to the DSB but stressed its desire to resolve the dispute through consultations.

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