The issue of whether China should implement capital control has become a rather controversial topic.

ANBOUND's research team believes that the discussion on whether China should tighten capital control should be made in accordance with different situation, distinguish the short term from the long term and differentiate between the strategical goal and tactical goal.

The massive capital flights has detrimental impacts on the nation's economic development and the measure to tighten capital regulation in the short term is upsetting but this does not change China’s long term strategic goal of promoting the opening up of financial market , formation of exchange rate mechanism and market-oriented reform.