Financial Liberalization in China

Capital account liberalization is a key, complicated issue for the Chinese economy. Free flow of capital has been an essential part of the neo-liberal international economic system, but it is nevertheless understood in East Asia that free flow of capital was a crucial factor in deepening the Asian economic crisis of 1997, and the risks as well as the benefits are therefore fully appreciated. This book explores the steps which China has taken so far to implement capital account liberalization, discusses the extent to which China continues to exercise control, and assesses the current debates surrounding the issue and how they are likely to play out.