Top US aides say serious concerns with China trade

WASHINGTON, June 23 (Reuters) - Top U.S. officials told Congress on Wednesday they had serious concerns about Chinese trade policies that disadvantage American firms and would take strong action if necessary to defend U.S. rights.

In testimony prepared for the Senate Finance Committee, U.S. Trade Representative Ron Kirk and Commerce Secretary Gary Locke also said President Barack Obama's administration would keep a close eye on recent steps by China to reform its currency.

"My colleague, Treasury Secretary Timothy Geithner, will be closely monitoring how far and how fast the Chinese let their currency appreciate and will continue to raise this issue with Chinese officials," Locke said.

Locke also said the Commerce Department was carefully considering requests to apply "countervailing duties" against China's currency in two cases now before the Department involving paper and aluminum products.

"Given the scrutiny that such decisions face in U.S. courts and at the WTO (World Trade Organization), I want to make sure our decision on whether to investigate is warranted by the facts and the law," Locke said.

A copy of both officials' prepared testimony was obtained by Reuters.

(Reporting by Doug Palmer; Editing by Sandra Maler)