The US plans to impose $50bn in tariffs on Chinese goods and limit the country's investment activity in the US as payback for what it alleges is years of unfair intellectual property theft....
The White House said the actions come after years of failed talks about the issue.
The move is the latest effort by Washington to grapple with competition from China's state-led economy.
China said it was ready to retaliate with "necessary measures".
US President Donald Trump has repeatedly criticised China for hurting America's economy.
The White House said an investigation of Chinese policies ordered by Mr Trump in August found a range of "unfair" practices, including using restrictions on foreign ownership that pressure companies into transferring technology.
The US also found evidence that China imposes unfair terms on US companies; steers investments in the US to strategic industries; and conducts and supports cyber attacks.
The White House says it has prepared a list of more than 1,000 products that could be targeted by tariffs. Businesses will have the opportunity to comment before the final list goes into effect.
The US will also seek to bring complaints about unfair licensing terms to the World Trade Organization, officials said.
America's top trade negotiator, Robert Lighthizer, told members of Congress this week the US was looking to put "maximum pressure on China and minimum pressure on US consumers".
Mr Lighthizer said protecting intellectual property was critical to the US economy.
"It's an enormously important issue," Mr Lighthizer said. "We think it is perhaps the most important thing that will have been done in terms of rebalancing trade."
The findings come from a review of China's practices that Mr Trump ordered in August, called a 301 investigation.
What has China said?
On Thursday, China's commerce ministry said it was ready to retaliate against the new tariffs.
"China will not sit idly by and let its legitimate rights and interests be harmed, and will certainly take all necessary measures to resolutely defend its legitimate rights and interests," it said in a statement.
According to the Wall Street Journal, China is preparing to hit back with tariffs aimed at President Donald Trump's support base.
This would include levies targeting US agricultural exports from Farm Belt states.
Does the move have wider support in the US?
There is growing concern in America that China is seeking technology that could be deployed for military purposes.
Congress is also weighing legislation that would boost the government's power to review foreign business deals, citing the threat posed by state-backed acquisition of US firms.
But some politicians and sectors, including retail and agriculture, have expressed concern about possible retaliation.
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