Is China taking steps to establish the renminbi as a reserve currency?

As it stands now that would be a stretch for a currency that is not yet convertible.

Step one; in September 2009 China allowed trade to be settled in renminbi with a number of key trading partners.

Step two;  last month China allowed offshore banks to transfer renminbi among themselves. This will allow the creation of new ways for foreign companies to hold and invest any renminbi that they receive through trade with China.

Step three: just last week  it allowed offshore banks and central banks to invest in China's interbank bond market.

Step four; at the beging of this week McDonald's Corp became the first non-financial foreign company to issue debt denominated in the Chinese currency.

The speed of the last 3 steps is making people take notice.

Read "Long march to renminbi convertibility" here