US proposes law on China currency peg

A proposed law in the US would mean currency manipulation would be labelled an unfair trade practise allowing manufacturers to challenge China's fixed yuan peg.

The "Chinese Currency Act of 2005" is the latest of a series of bills filed in Congress against China's currency peg linking the yuan to the US dollar, which many observers say has left the yuan vastly undervalued at the expense of US industry.

Lawmakers said the legislation would be introduced in the House of Representatives by Republi