The Trump administration has repeatedly attributed the country's economic slowdown and job losses to trade deficits with major trading partners including China and Mexico and vowed to change the situation by imposing tariffs and other non-tariff trade barriers if necessary.
Such thefts not only damage American companies, but also pose a threat to the USA national security, the second official said.
The concerned parties should avoid remarks and actions that could escalate tensions in the peninsula, Xi told Trump, adding China is ready to work with the United States to appropriately resolve the issue. These limitations forced many foreign companies into joint ventures with Chinese entities, many of them state-owned, effectively a form of technology transfer.
The New York Times reports that he is going to follow through on calling for an investigation into whether China violated intellectual property agreements. Just last week, North Korea had threatened to strike Guam, which is a United States base in the Pacific Ocean.
On Saturday, administration officials said the new trade measure was "totally unrelated" to events involving North Korea.
In a phone call earlier this weekend, Trump and his Chinese counterpart Xi Jinping "agreed North Korea must stop its provocative and escalatory behaviour", according to a White House statement released after the phone call.
The United Nations Security Council, including permanent member Beijing, approved tough sanctions against Pyongyang on August 6 that could cost the country $1 billion a year.
China's ban also comes at a time when tensions between China and the USA are rising, as Donald Trump considers an investigation into the former's trade practises. If an investigation begins, the US government could seek remedies either through or outside of the World Trade Organization.More news: 'Unite the Right' leader blames Charlottesville officials for violence
They know how I feel. "But if China helps us, I feel a lot differently toward trade - a lot differently toward trade".
Purdue University Political Science and International Law Professor Louis Rene Beres, writing in The Hill, notes that the U.S. bluster with North Korea might alter Israeli calculations. The UN sanctions, introduced to punish North Korea for its missile and nuclear programmes, do not include any bans on textile exports.
The new measure comes amid high tensions between Washington and Beijing.
"This is simply not fair", said the official who spoke on condition of anonymity.
It gave no indication of how Beijing might respond but Chinese law gives regulators broad discretion over what foreign companies can do in China.
Among the other big names in USA technology, Facebook and Google are now sidelined in China.
If an investigation begins, Washington could seek remedies either through the World Trade Organization or outside of it.