Controls on currency exchange by China and its overall trade surplus may in all probability force Congress to pass a retaliatory legislation to corner Beijing into taking corrective measures, a US Senator said on Tuesday.

Sen Baucus said that in year 2005 the US trade deficit with China stood at $200 billion which was an increase of 25 percent over last year.

China's fast paced rise in garment exports, after the quotas were lifted in early 2005 has also contributed to the unpleasantness between two countries.

China revalued the yuan by 2.1 percent to 8.11 a dollar in July, and since then the yuan has risen step by step to about 8.07.

Retaliatory legislation promoted by Democratic Senator Charles Schumer of New York may impose tariffs of 27.5 percent on Chinese exports unless Beijing raises the value of its currency.

It was not possible that yuan would rise up sharply, assured Tang Xu, Director-General of the Research Bureau of People's Bank of China.

Sen Baucus said Bo Xilai assured the lifting up of the ban on beef imports from the United States was being considered by China.

China has to come out with better solution to ward off the impending currency legislation, said Baucus.