Core Viewpoint - The discussion on the de-dollarization process emphasizes the necessity of five conditions for the renminbi to potentially replace the US dollar as the primary global settlement currency, as articulated by Xiang Songzuo, who draws from Mundell's theories [2][3]. Group 1: Five Conditions for De-dollarization - The first condition is that the economic scale must be sufficiently large [3]. - The second condition is a strong capability for technological innovation [3]. - The third condition requires a capital market that possesses both breadth and depth [3]. - The fourth condition emphasizes the need for both financial innovation and effective regulation [3]. - The fifth condition is the establishment of a legal system that ensures a secure haven for wealth [3]. Group 2: Mundell's Impossible Trinity - The concept of Mundell's Impossible Trinity suggests that a country cannot simultaneously achieve monetary policy independence, capital mobility, and exchange rate stability; it can only pursue two of these goals at a time [6]. - The US model prioritizes monetary policy independence and capital mobility, allowing the Federal Reserve to adjust interest rates autonomously to respond to domestic economic conditions [8]. - In contrast, the Chinese model focuses on monetary policy independence and relative exchange rate stability, which limits capital mobility and poses challenges for the renminbi's international credibility [9][11]. Group 3: Implications for the Renminbi - The renminbi's status as a currency is hindered by its lack of full convertibility, which is essential for it to be considered a safe haven for wealth [2][11]. - The current discourse should focus on whether the renminbi can open its capital account rather than whether it can replace the dollar as the primary global settlement currency [11].