Capital Account Liberalization in China

Li Wenjun

Chinese Economy, 2004, vol. 37, issue 1, 85-116

Abstract: This study reviews the course of capital account liberalization in China, focusing mainly on the course of China's current account liberalization, the current status of the capital account, restrictions on the capital account, and its costs. Some preconditions of realizing capital account liberalization in China are described. There are many differences between China and other countries that have realized capital account liberalization. Some general practices of capital account liberalization are briefly summarized. The analysis suggests that China should utilize a gradual process to unclog its capital account.

Date: 2004
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