Core Viewpoint - The recent strength of the Renminbi (RMB) against the US dollar, surpassing the 7.17 mark, is attributed to various factors including economic fundamentals, capital flows, and market sentiment, despite the backdrop of US tariffs [1][2][3][4] Group 1: Economic Fundamentals - The RMB's appreciation is surprising given the economic growth slowdown in China, but the country's economic fundamentals are reportedly stronger than those of developed nations, with optimistic growth forecasts from the World Bank and IMF [2][3] - The RMB's stability is supported by ongoing institutional reforms and the potential of domestic demand, alongside significant technological innovations [2] Group 2: Capital Flows - The decline of the US dollar's dominance is influenced by the changing global economic landscape, with foreign investors increasingly recognizing the value of Chinese assets, leading to substantial capital inflows into China [3] - The RMB's strengthening is partly due to a shift in investor sentiment towards Chinese assets, as many are looking to "bottom-fish" after a period of adjustment [3] Group 3: Market Sentiment - The current RMB strength may signal the beginning of a new global monetary system, as the US dollar faces challenges from its politicization and increasing national debt [4] - There is a growing consensus among global investors to diversify away from the dollar, with the RMB emerging as a stable alternative for reserves and transactions, particularly in new commodity pricing and cross-border payment systems [4]