In a letter to U.S. President Barack Obama, 11 senators called for stronger action to level the playing field for U.S. businesses.
"There is no doubt that the Chinese government is manipulating its currency to keep its value lower than it otherwise would be which gives its exports a significant price advantage over U.S. manufactured goods," the senators wrote.
"We are gravely concerned by the administration's failure to address China's currency practices and other predatory actions," the letter said.
"During this economic recovery, it is critical the administration use all trade enforcement tools available to ensure U.S. industries the opportunity to compete fairly and export goods and services."
A White House spokesman was not immediately available for comment.
U.S. Treasury Secretary Timothy Geithner said earlier the United States will be focused on how fast and how much China lets its yuan currency appreciate after Beijing's new commitments to foreign exchange flexibility.
"China, as you know about six weeks ago ... took the essential step of restoring flexibility to (its) exchange rate and making it clear that they're going to allow that exchange rate to appreciate in response to market forces over time," he said in response to questions at a forum held by two public policy groups.
Import-sensitive U.S. industries like steel and textiles in particular want Congress to pass a bill that would require the Commerce Department to treat China's "undervalued" currency as a subsidy under U.S. trade law.
That would allow companies to request countervailing duties to offset the amount of China's currency undervaluation.
Senate Banking Committee Chairman Chris Dodd has said he wants to hold a hearing on China's currency policy, but has not yet set a date. The House of Representatives Ways and Means Committee has scheduled a hearing on the issue the week of Sept. 12. (Reuters)
