If China could also strike the same deal with Saudi, Iran, Venezuela and gas rich Central Asia, combine with China own trading power, countries would start accumulating yuan for their energy and made in China transaction purposes and later when that become a norm, as a reserve currency.

The only obstacle here is China reluctance to let yuan float so other countries can accumulate yuan. Exchanging it first with HK dollar is indeed increasing the cost and make yuan less attractive compare to dollar. China really need to move fast to seize this opportunity. It is dangerous to open the capital market, but what other choice do China have if it want to transform its economy? If China want yuan to be accepted, it need to let it go first.

On the other hand, this also showed how unattractive rupee is, that it can't even be converted directly to yuan because there is no demand for it from China.