It is a mistaken notion that if the Chinese allowed their currency to float against the dollar that their currency would purchase more dollars.
A true float would include an international contemplation of their banking situation.
It is well known that over half of all Chinese bank loans are non performing. They are functionally bankrupt.
The fact is, their currency would drop dramatically in value against the dollar if they allowed it to float.
They will stay pegged and enjoy the false valuation they currently have for the foreseeable future.
Sounds like Dubya has an opportunity for another S&L bailout.