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The article discusses China's foreign relations policies and its buildup of armed forces to demonstrate its superpower status. China's monopolistic control of rare earth metals such as dysprosium, the increase in China's navy to show power in territorial disputes in places like the Senkaku Islands, and China's refusal to revalue the yuan currency despite strong international pressure are all described. The article also analyzes China's relations with the U.S., Japan, and Canada.

The article reports that the direct yen-yuan trading in Shanghai, China and Tokyo, Japan markets officially started on June 1, 2012. This development has made the yen the first major currency aside from the U.S. dollar to be directly traded with the yuan which is expected to reduce transaction costs and risks involved in settlements at financial institutions. An overview of the trade relations between China and Japan is provided.

The article discusses the move of Japan and China to announce its landmark agreement which facilitates trade between the two government without using the U.S. dollar. It states that in the agreement, the two governments encourage trade in yen and yuan without using dollars as a mediator. It cites that it allows companies of the two countries to convert its currencies directly. It also mentions that Japan agreed to hold yuan in its foreign-reserves portfolio.

The article reports that Chinese and Japanese governments are collaborating to enhance the international monetary value of the Chinese yuan. Despite the global financial crisis, it is noted that China managed to maintain its capital market reform sequencing for the benefit of the yuan. It describes efforts launched by Chinese Vice-Premier Li Keqiang to encourage foreign qualified institutional investors to invest in the currency. An overview of the Chinese corporate bond market is also offered.