A total of 130 House lawmakers sent a bipartisan letter to cabinet officials to take action against China’s currency policy, which they claim hurts U.S. manufacturers by undervaluing exports and making them cheaper, putting U.S. companies at a competitive disadvantage.

The lawmakers’ call for action followed remarks from Chinese Premier Wen Jiabao in which he defended his country’s policies.

China’s currency policies have long been a target of U.S. lawmakers, who have attacked an undervalued Chinese yuan with several proposed legislative measures.

Momentum for passing the legislation slowed after China delinked its currency to the dollar in 2005 and allowed it to rise by 20 percent through 2008. But the yuan has been frozen for over a year, which could provide momentum for action this year.

With a key Treasury report due by April 15 and looming midterm Congressional elections, lawmakers are turning up the heat on China.

Lawmakers asked the Commerce Department to apply U.S. countervailing duty law to currency manipulation and asked the Treasury Department to cite China for currency manipulation in its biannual report. If that happens, the U.S. could take China to the World Trade Organization and press for punitive tariffs.

Chinese premier Wen blamed recent steps by the Obama administration for the tensions.

Seemingly referring to the U.S., he said, “I understand that some countries want to increase their exports,” noting 60 per cent of China’s exports are made by foreign-invested or partnered companies.