FILE PHOTO: White House trade adviser Peter Navarro listens to a news conference about a presidential executive order relating to military veterans outside of the West Wing of the White House in Washington, U.S. March 4, 2019. REUTERS/Leah Millis/File Photo

WASHINGTON (Reuters) - An initial pact on U.S-China trade will include much of a scrapped May deal’s agreement regarding intellectual property and will target enforcement mechanisms, White House trade adviser Peter Navarro said on Thursday, adding that he hopes the Chinese negotiate in “good faith.”

“The good news about this phase one ... is it adopted virtually the entire chapter in the deal last May that they reneged on for IP,” Navarro told Fox Business Network in an interview. “Practically it means, if they steal our IP we’ll be able to take retaliatory action without them retaliating.”