UPDATE 2-US House sets China currency hearing for Sept

(Adds Dodd's comment and background)

WASHINGTON, July 22 (Reuters) - Democratic leaders in the U.S. House of Representative said on Thursday they will wait until at least September before taking any action on legislation to force China to revalue its currency.

House Majority Leader Steny Hoyer said the Ways and Means Committee would hold a hearing on the issue when lawmakers return from their August break the week of Sept. 12th.

House Ways and Means Committee Chairman Sander Levin said the purpose of the hearing would be to review the issue and assess whether any legislation was needed.

They spoke at an event to lay out House Democrats' plans to pass several pieces of legislation aimed at helping create more U.S. manufacturing jobs.

Import-sensitive U.S. industries like steel and textiles in particular want Congress to pass a bill that would require the Commerce Department to treat China's "undervalued" currency as a subsidy under U.S. trade law.

That would allow companies to request countervailing duties to offset the amount of China's currency undervaluation.

China recently loosened its currency from a peg to the dollar, but it has risen only slightly in value since.

"There's been less than a 1 percent change and that's very unsatisfactory," Levin said. "That's the purpose of the hearing, to determine the progress to date, and if there isn't, what the next step is."

Senate Banking Committee Chairman Chris Dodd also has said he wants to hold a hearing on China's currency policy, but has not yet set a date.

The Senate will be in session until around Aug. 7 before taking its break.

In contrast, the House which is expected to leave at the end of July for its summer recess.

Senator Charles Schumer and several of his colleagues have been pushing for a vote in the Senate on China currency legislation, but so far nothing has been set. (Reporting by Doug Palmer; Editing by Jan Paschal)