Decius wrote:
This is basically a threat - inflate (read default) and you'll loose your influence.

Naked Capitalism:
So far, this move is merely a shot across the bow, but the fact that China is raising doubts about the dollar is not trivial.

Andrew Batson, The Wall Street Journal:
China's proposal is likely to have significant implications, said Eswar Prasad, a professor of trade policy at Cornell University and former IMF official. "Nobody believes that this is the perfect solution, but by putting this on the table the Chinese have redefined the debate," he said. "It represents a very strong pushback by China on a number of fronts where they feel themselves being pushed around by the advanced countries," such as currency policy and funding for the IMF.

International currency proposal aside, China has a point about the U.S. dollar.

RE: naked capitalism: China Calls for New Reserve Currency