The World Trade Organization (WTO) created a panel today to investigate China's protection of intellectual property such as films and software.
World Trade Organization (WTO) chief Pascal Lamy
The panel was set up at the request of the United States and was described by China as regrettable.
The move is comes amid frustration at ripoffs of films, branded goods and other trademarked property openly available in Chinese cities as in many other parts of Asia.
US diplomats told the WTO Dispute Settlement Body that Washington recognised China had made the protection of intellectual property rights a priority and China had taken steps to improve their protection.
But talks between the two countries had not resolved US concerns.
It was the second request by the United States, after the first one was rejected by China. Under WTO rules, China is not able to block the panel over a second request.
China said in a statement to the WTO that it was confident its measures to protect intellectual property and copyright were in line with WTO rules. China has taken a case against the United States over anti-dumping measures on paper imports from China.
The United States was joined by Japan, Mexico, the European Union, Argentina and Taiwan as third parties in the case, allowing them to express their views to the panel. Other countries could join later.
The panel has six months to review the case, once the panellists have been appointed.