According to this article (I’ve read it a few times over the last year or so), the yuan was depegged from the dollar 2 years ago. Just a heads up.
11 May 20111
“The yuan has appreciated by about 5% since China de-pegged it from the US dollar two years ago.”
From:
“China-US make progress on trade but differences remain”
http://www.bbc.co.uk/news/business-13356739
You are correct but the problem was that China depegged it ONLY 5% because we were putting pressure on them and they wanted to stave off any trade threats coming from the US. Currencies around the world float freely in the marketplace against one another and the dollar China’s does not. China controls their currency to maintain their trade advantage.