IMF and RMB; H200s; DeepSeek and Nvidia; Japan-China; Reactions to the US National Security Strategy

Since the beginning of this year, facing tariff wars and trade wars impacting the world economic order, and unilateral bullying impacting multilateral mechanisms, the giant ship of China has braved the wind and rain and moved forward. Technological innovation has injected strong momentum into the construction of a modern industrial system. Future investment potential in infrastructure and livelihood areas is huge, and the talent dividend, especially the “engineer dividend,” is constantly strengthening... The certainty of future growth and development trends has become a solid footnote to “believing in China is believing in tomorrow.” - December 11 Page One People’s Daily Commentary

We are still waiting for news about the Central Economic Work Conference. All signs would indicate it is underway, so we should have a readout this week.

Summary of the top items:

1. Growing consensus the RMB is undervalued - At the end of its ten-day mission to China, the IMF released a report raising its e…