WASHINGTON (Reuters) - The Senate is poised to follow the House of Representatives in passing legislation aimed at pressuring China to raise the value of its currency, a top U.S. senator said on Wednesday.
"China's policies have a significant impact on the United States," Senate Finance Committee Chairman Max Baucus said in the text of a speech given in Beijing.
"Economists estimate that China's currency is undervalued by 20 to 40 percent. And correcting this imbalance could create up to 500,000 new U.S. jobs. The U.S. House of Representatives recently passed legislation designed to correct this imbalance. The Senate is poised to follow suit," Baucus said.
The Senate Finance Committee has jurisdiction over trade issues, and Baucus' statement follows a vote in the House last month threatening China with punitive duties on some exports to the United States if its currency does not rise significantly in value.
It also comes days before the Treasury Department must decide in a semi-annual report on exchange rates practices whether to formally label China a currency manipulator -- a step that would rile Beijing, which says its currency practices are an internal matter.
A U.S. Treasury spokeswoman declined to say whether the report, due on Friday, will be released on time.
Democratic and Republican administrations have delayed the report in the past to the frustration of many lawmakers who believe the Treasury Department should plainly state that China is manipulating its currency for an unfair trade advantage.
U.S. Treasury Secretary Timothy Geithner delayed the report due April 15 for more than two months to give China additional time to announce currency reforms.
(Reporting by Doug Palmer; Editing by Xavier Briand)
