The US has formally launched an investigation into China’s policies regarding intellectual property.
Top US trade official Robert Lighthizer said his office had “determined that these critical issues merit a thorough investigation”.
The move was expected after President Donald Trump asked Mr Lighthizer to review China’s practices. China has voiced “serious concern” over the inquiry, which could result in US trade sanctions.
The US has been concerned about the matters for some time, said Gary Hufbauer, from the Peterson Institute for International Economics in Washington.
The annual cost to the US economy from counterfeit goods, pirated software and theft of trade secrets has been estimated at up to $600 billion (Sh60 trillion).
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On Friday, the US said it planned to look into hacking and reports that the Chinese government is steering investment into US companies in key industries as a way to gain access to new technology.
Officials will gather comments and hold a hearing in October as part of the investigation.
