China's Capital Account Convertibility Of Capital Controls In The Process

With the rapid development of economic and financial globalization, the pattern which the large-scale of domestic and foreign capital inflows and outflows forms gradually. The extremely important research topic and pressing issue which we face is how to maximize the use of external resources for domestic economic development, and we should choose which approach to further push on Renminbi capital account liberalization.Capital control is not the goal, but one kind of transitional action which is adopted on capital account liberalization in a country when Home Currency has not realized capital account liberalization. Capital control is static in a certain point, while it is a dynamic equalization process as it was placed in the capital account exchangeable process to inspect. This article take capital control in the course of capital account liberalization as a master research clue, through analysing the interrelation between capital account liberalization and capital control, then, based on the review and comparison of existing theories, put forward capital control correlative strategy choice and policy suggestion using a statuesque opening model in the capital account liberalization.This article contraposes capital control in view of the capital account exchangeable process, proposing two great principles for weighing capital control validity: policy goal principle and risk-controlling principle. According to these two principles, the author use quantitative analysis and qualitative analysis to judge the validity of capital control of our country. Then based on the analysis, the author proposes the way near future which will be choosen in Renminbi capital account exchangeable advancement to control capital-flowing, and the approximate tentative frame of the transformation of capital control was also given. The forward choice is that capital control is gradually abolished, to carry out Renminbi capital account liberalization.