Attack Japan where it hurts the most

China should continue buying Japanese treasuries in order
to push up Japanes Yen on the currency market if Japan doesn’t give in on Diaoyutai Island. Diaoyutai Island belongs to China.

China should agressively purchase Japanese Bonds and force Japanese government to defend the yen from making new highs against American dollar.

It allows Chinese government to diversy its foreign currency reserves and make Japanese products less competitive on the world market. Once Japanese government is forced to defend it’s currency, it gives Chinese government a perfect reason to defend it’s currency: Renminbi.