Washington - The Senate on Monday weighed whether to punish China for undervaluing its currency and taking away American jobs. At issue is whether legislation would boost the American economy, as its supporters argue, or initiate a damaging trade war with a major partner.

The bill has bipartisan backing and on a 79-19 vote easily achieved the 60 votes needed to move it to the Senate floor. Wisconsin Sen. Herb Kohl, a Democrat, voted for advancing the bill, while Wisconsin Sen. Ron Johnson, a Republican, voted against.

But the legislation faces considerable hurdles before it becomes law. The Obama White House, while agreeing that China's yuan is undervalued, has been wary of unilateral sanctions against the Beijing government. Major U.S. business groups share that concern, and House GOP leaders have shown no interest in bringing it to a vote.

The Senate bill, which does not specifically mention China, sets in motion a process for imposing punitive tariffs on a country with misaligned currencies. The bill also makes it easier for specific industries to seek higher tariffs on foreign competitors when undervalued currencies become a means to subsidize exports.

Supporters of the bill say that despite some incremental adjustments by Beijing over the past year, the value of the yuan is still as much as 40% below what it should be, keeping the prices of Chinese goods artificially low and U.S. products excessively high.

Sen. Chuck Schumer, D-N.Y., who has been sponsoring currency legislation for the past six years, said China's "predatory currency practices" were "undermining the economic health of American manufacturers and their ability to compete at home and around the globe."

View original article