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Meanwhile, Schumer predicted the legislation would pass both the Senate and the House of Representatives with a large enough margin to protect it against a presidential veto.

Paulson, who took over Treasury last year, has been trying to persuade Chinese officials that they need to let their currency appreciate more rapidly because protectionist sentiment was on the rise in Congress. The Treasury report pledged to continue to push Beijing on the currency issue.

"Treasury forcefully raises the Chinese exchange rate regime with Chinese authorities at every available opportunity and will continue to do so," the report said.

"China should not hesitate any longer to take far more vigorous action to rebalance its economy, promote immediate RMB movement to tackle the currency's undervaluation, and achieve far greater flexibility in the exchange rate regime," it said.

Treasury officials said they were still studying the bill. Paulson, who got a telephone briefing on Wednesday on the legislation, has previously said Treasury has all the tools it needs to press China on the currency reform.

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