Another interesting aspect of country-code domain policy is how to consider expanding the concept to codes that are not in Latin script. The ISO 3166-1 code list only uses the letters A to Z, but a clear desire has been expressed to use more familiar characters in countries not familiar with Latin script. This gives rise to a number of big questions. Will the concept of country-code top-level domains translate into internationalised domain names? Without an independent agency like the ISO 3166 MA, how will the appropriate codes for countries in various languages be decided? Should multiple domains for the same country be synchronised in some way? These questions, and many more, are a hot-topic of discussion amongst the various constituencies within ICANN.
Yes, good questions. That's what we want to know also, lol.
http://blog.icann.org/?p=15