The US government is asking the World Trade Organisation to force China to crack down on pirated software.

Last month the Federal Bureau of Investigation (FBI) and China’s Public Security Bureau (PSB) arrested 25 gang members believed to be responsible for manufacturing and distributing more than $2bn (£1bn) of illegal software.

The US argues that a lack of regulation has helped the booming industry of pirated American goods, fuelling a black market that costs US companies billions of dollars every year.

'Over the past several years, China has taken tangible steps to improve (intellectual property rights) protection and enforcement. However, we still see important gaps that need to be addressed,' said a spokesman for US trade representative Susan Schwab.

US officials want to see more aggressive prosecution in China of those who pirate copyrighted or trademarked materials, and more stringent rules for what happens to the illegal products once they are seized.

The two countries held talks in June on the issue but came to no agreements.