China's Capital Account Opening Conditions And Order

The capital account liberalization is the issue of a country how to involve in the world economic system, the issue of meeting the challenges and opportunities of economy globalization and finance liberalization. In other words, it is the inevitable outcomes of economic reformation and opening-policy. It reflects the competition strength of one country. If our country will develop the domestic economy, incorporate the economic system in the world further, give play to function more greatly on the international economic stage, it is an unavoidable trend that the capital account is liberated. But the risk brought by liberalization makes us highly watch out for either. To some extent frequent economic crisis has relation with the capital account liberalization. RMB current account is convertible after more than ten years' reformation in foreign exchange management system. It is necessary for Chinese economic system reformation to open the capital account. Therefore, how to draw experience and lesson from the course of the capital liberalization of other country correctly and how to push the capital account liberalization become an urgent problem for us to solve.Although the discussion on capital account liberalization is not a new topic, it has the real significance to re -research this field considering the economic development trends and demands of domestic constructions. This paper regards capital account liberalization as a part of China economic reformation. From the angles of history and international comparison, this paper analyses the conditions of capital account liberalization and finds out disparity. By using the experiences and lessons of other countries for reference, the conditions and order of capital account liberalization of China were given.This text is divided into four parts.The first part is a theory introduction which set theoretic foundationfor further discussion. In this part some concept about capital account liberalization, theory about conditions and order of capital account liberalization were introduced. At the same time, the reason and risk of capital account liberalization were analyzed.In the second part history and current situation of capital account liberalization in China were explained and the characteristic was summarized. The effect of current situation on liberalization condition and order and significance to our country was discussed.In the third part the background, history and current situation of foreign capital account liberalization and the liberalization course of Chile, Thailand and India were briefly introduced. International comparison was done from liberalization background, liberalization order, liberalization result. Through the comparison reference meaning was got.In the fourth part international and domestic background was discussed. On the base of discussion on the effect of the background, the conditions which met our country in capital account liberalization. At last the conditions and concrete order of capital account liberalization of China were put forward on the base of frontal analysis.