Core Viewpoint - The article discusses the ongoing financial battle between the US dollar and the Chinese yuan, highlighting how the recent ban on non-dollar metal trading in London may inadvertently strengthen the yuan's position in global metal transactions [1][3]. Group 1: Historical Context - The article draws parallels between the current situation and the decline of the British pound in the 1950s, where attempts to enforce currency dominance through administrative measures backfired, leading to the rise of the dollar as the primary global currency [5][10]. - The dollar's dominance has been built on three pillars: settlement, reserve, and pricing power, with pricing being a significant source of revenue [12][18]. Group 2: Current Developments - The Shanghai Futures Exchange recently reported that yuan-denominated copper futures have reached the highest global position, while the London Metal Exchange (LME) has halted all non-dollar metal options trading, indicating a desperate attempt to maintain dollar dominance [8][10]. - The yuan's share in global metal pricing has surged by 900% over three years, with countries like Russia and those in the Middle East increasingly signing long-term contracts in yuan [8][18]. Group 3: Market Reactions - Following the LME's ban, the Shanghai Futures Exchange saw a significant increase in trading volume, while dollar-denominated transactions on the LME stagnated, indicating a shift in market sentiment towards yuan pricing [23][25]. - The Dubai Commodity Exchange announced plans to launch yuan-denominated copper futures, further solidifying the yuan's position in the market [25][30]. Group 4: Future Implications - The article suggests that the dollar's attempts to maintain its hegemony through financial restrictions may lead to its own decline, as the yuan's real demand in the industrial sector becomes more prominent [32][34]. - The shift towards yuan-denominated transactions is seen as a natural evolution of the global industrial landscape, with the yuan's rise being supported by actual market needs rather than speculative financial maneuvers [36].

Group 1 - The core viewpoint is that the suspension of RMB futures trading on the London Metal Exchange is part of a strategic move to undermine the RMB's pricing power, coinciding with the U.S. government's upcoming quantitative easing policy and the formation of a key minerals alliance among ten countries [1][3][7] Group 2 - The U.S. economy is facing significant challenges, including government shutdowns affecting over 30 million people, large-scale layoffs in Wall Street and Silicon Valley, and liquidity issues in bank margin accounts, making quantitative easing a potential solution to reverse the situation [3][5] - The London Metal Exchange's sudden announcement to halt RMB and other non-USD currency futures trading cites "insufficient liquidity and low trading activity," despite data showing that RMB-denominated copper futures had an average daily trading volume of 357,000 contracts in 2024, increasing to 482,000 contracts in the first half of 2025, indicating that the liquidity claim is questionable [5][7] Group 3 - The U.S. aims to leverage quantitative easing to raise global metal prices and eliminate the RMB pricing system from the market, thereby reinforcing the dollar's dominance in key mineral pricing [7] - To counter this situation, it is crucial for major global buyers to reduce reliance on a single currency and actively promote a diversified currency settlement system, enhancing cooperation with other economies in key mineral sectors and exploring new pricing mechanisms [7]