Reuters reports that trade tensions between Washington and Beijing may be running high but Corporate America is finding China to be a reliable source of profit growth this year. Whether they sell construction equipment, semiconductors or coffee, many major U.S. companies have reported stronger second-quarter earnings and revenue from their Chinese operations in recent weeks. They are benefiting from a Chinese economy that is growing at almost 7 percent, several times the rate of U.S. expansion, a Chinese housing boom, and a slide in the U.S. dollar, which makes American exports more competitive and increases dollar earnings once they are translated from foreign currencies. Chinese President Xi Jinping's ambitious plan to build a new Silk Road that will improve links between China and dozens of countries in Asia and Europe, and includes many billions of dollars of new roads, bridges, railways and power plants – is also helping American firms to sell heavy equipment and other products...Caterpillar Inc (CAT.N), a bellwether for industrial demand in China and beyond, reported its sales in Asia-Pacific rose 25 percent in the second quarter - thanks to China...Caterpillar's Japanese rivals Komatsu (6301.T) and Hitachi Construction Machinery Co (6305.T) reported similar strength in demand for heavy machinery...Chinese companies are also benefiting from the robust domestic economy. For example, Chinese auto manufacturer Geely Automobile Holdings (0175.HK) announcing last week that its July sales climbed 89 percent from the year-earlier-month.

Financial Times reports that top aides to Donald Trump have sought to placate China, insisting the country is vital to resolving the nuclear crisis over North Korea's nuclear programme, even as the administration prepares its first direct trade attack on Beijing. Mr Trump is expected to sign a presidential memorandum on Monday asking his top trade negotiator to examine launching an investigation into China's intellectual property regime. Administration officials say the move signals a tough new US approach to Beijing's unfair trade practices.  The step could lead to US tariffs and other restrictions on Chinese imports within a year in what many see as the potential first step towards a trade war between the world's two largest economies. But top aides to the president tried to play down such trade tensions as they sought Beijing's help in dealing with North Korea.  HR McMaster, Mr Trump's national security adviser, said on Sunday that China's help was vital to resolving the North Korea crisis and that the US was not looking for a trade conflict.  "The operative word is not 'punish'. The operative word is to compete effectively, to demand fair and reciprocal trade and economic relationships with not just China but with all countries," he told NBC television. Speaking to reporters on Saturday, other senior administration officials insisted that the issues of North Korea and trade should not be linked. "These are totally unrelated events. Trade is trade. National security is national security," one said. 

The Washington Post says that the Trump administration announced Saturday that it is planning to launch an investigation into Chinese intellectual property violations that could result in severe trade penalties, an escalation that presents both opportunities and risks at a time when the United States needs China's help to contain the North Korean nuclear threat.The president plans to sign an executive memorandum Monday afternoon, directing his top trade negotiator to determine whether to investigate China for harming intellectual property, innovation and technology, senior administration officials said in a conference call Saturday morning.The measure would seek to address what the U.S. business community has described as flagrant trade violations by China, which employs a variety of rules and practices to wall its market off from foreign competition and pressure U.S. companies to part with valuable product designs and trade secrets — or to steal them outright. The investigation, which one U.S. official said could take as long as a year, may prove to be a source of leverage to push China to do more to help contain a rising security threat from North Korea, which counts Beijing as its only powerful ally.