Investment Rating - The report does not provide a specific investment rating for the industry or currency discussed. Core Viewpoints - The report argues that the Renminbi (RMB) is unlikely to follow the path of the Japanese Yen from 1985 to 1995, primarily due to ongoing deflationary pressures and the need for a loose monetary policy [5][6][19]. Summary by Sections Historical Comparison - The report draws parallels between the RMB and the Yen, noting that while the Yen appreciated significantly (211% against the USD from 1985 to 1995), the RMB is not expected to follow this trend due to complex trade relations and domestic economic conditions [5][6][27]. Trade Tensions - It is emphasized that merely allowing the RMB to appreciate will not resolve the intricate issues in US-China trade relations, which include national security concerns and the need for structural changes in both economies [8][9][12]. Economic Challenges - The report highlights that a significant appreciation of the RMB could exacerbate existing deflationary challenges in China, weakening corporate profits and leading to reduced overall demand [20][21][19]. Structural Rebalancing - The report argues that currency appreciation alone will not facilitate the necessary structural rebalancing of the Chinese economy from an investment-driven model to a consumption-driven one [35][39]. Policy Implications - The report suggests that policymakers are likely to prefer managing currency depreciation rather than allowing significant appreciation, especially in light of ongoing economic challenges [19][36].