A bipartisan group of 14 US Senators today announced a new legislation to vigorously

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address China's chronic undervaluing of its currency that "unfairly" impacts America, two days after Chinese Premier Wen Jiabao rejected calls for his country to float its currency.

The proposal outlines stiff new penalties on designated countries, including tariffs on the countries' exports and a ban on any companies from those countries receiving US government contracts.

"US manufacturers can compete with anyone. But when China and other countries manipulate currency, that's not competition – it's cheating.

"Currency manipulation gives Chinese manufacturers a 40 percent cost advantage," said Senator Sherrod Brown, one of the cosponsors of the bill.

"If we're serious about boosting exports – and creating jobs in American manufacturing – we need to crack down on practices like currency manipulation. We owe it to American workers and American businesses. Trade distorted by currency manipulation isn't fair or free -- it's a sinkhole,' he said.

The move comes two days after Chinese Premier Wen Jiabao rejected calls for his country to float its currency.

When asked about the legislation, White House Press Secretary Robert Gibbs: "I think you saw the President mentioned just a few days ago that he wished and hoped that China approached their currency using a more market-based interpretation, and I would point you to the Treasury for any further announcements on that."