Two U.S. senators on Monday released a new government report which they said showed that widespread counterfeiting and piracy in China have harmed U.S. economic interests.

"China continually fails to protect and enforce American intellectual property rights and discriminates against American businesses," Senate Finance Committee Chairman Max Baucus said in a statement accompanying the U.S. International Trade Commission study.

Baucus and Senator Charles Grassley, who requested the report, timed its release to coincide with high-level U.S.-China talks taking place this week in Washington.

"Small steps and empty promises won't cut it when American jobs are on the line. This week's U.S.-China trade talks are the perfect opportunity for China to make serious commitments to address these issues. It is time for action," Baucus said.