China crisis as FBI cracks down on pirates

Chinese gangs are thought to be responsible for shipping 'huge quantities' of DVDs and software into the US

Chinese police are receiving assistance from the FBI to crack several large-scale counterfeit networks, according to a report in the Financial Times.

The FBI reportedly claims that such networks are shipping "huge quantities" of fake goods, including DVDs and software, into the US.

Louis Reigel, assistant director for the FBI's cyber division, said: "This is not a process that can be accomplished overnight. We are not looking at mom and pops."

Reigel added that the Chinese counterfeiters being targeted are not necessarily criminal syndicates, but are organised along similar lines.

He cited US customs statistics from the past two years suggesting that roughly two thirds of counterfeit goods seized in the US come from China.

Reigel is in Beijing as part of a large multi-agency US team to discuss the abuse of intellectual property rights.

A senior US trade official said that China, led by Wu Yi, a vice-premier, is putting "serious work" into improving intellectual property rights enforcement.

The talks between the US and China precede a visit to Beijing later this month by President Bush. The US trade deficit with China is expected to reach a record £115bn this year.