Perfect Of Cross-border Capital Flow Regulation Legal System In Our Country

The Financial Crisis of the America in 2008 led to the World Financial destabilization which caused the severe situation of the International Capital Flow in China. In the practice, we found it necessary to improve the methods in the Foreign Exchange Regulation field. Due to the special historical background, China started to build its legal system after the Reform and Opening up, since when the Foreign Exchange Regulation system was founded. Although the legislative technique of China was not so sophisticated, the Foreign Exchange Regulation system also pays a very important role in protecting National Security and financial stabilization. The problem of non-well organized system became the main obstacle for the proper use of foreign exchange and the risk control management of the International Capital Flow.First, the following passage will make a conclusion for the recent situation and the impact of the International Capital Flow. From the view of practice, the main routes for the International Hot Money to enter China market are from the Foreign Exchange and Foreign Investment. The main path for the International Hot Money in the Foreign Exchange are mostly from fake trade, leads and lags, while the path in the Foreign Investments are mostly from Foreign Direct Investment, Foreign Indirect Investment and Foreign Debt.China has improved the Foreign Exchange Regulation system in order to facing the sever situation of the International Capital Flow. China has also strengthened the management in Foreign Exchange and Foreign Investment together with the maintenance of stability of normal investment and trade. Yet, there still remain some insufficiencies in the Foreign Exchange Regulation system, such as the low effect level of existing regulation, the lack of cooperation with international organization.After study experience of other countries, this essay gives some initial solutions to the existing problems. These solutions including Tobin Tax, enhancing the cooperation with international organization, raising the effect level of foreign exchange regulation, improving the system of foreign exchange reserves.