At present, China is gradually promoting the opening of the capital account
market in accordance with the principle of step-by-step and overall consideration.
However, in the context of the financial crisis, the sharp depreciation of the US dollar
against the major international currencies has led to the turbulence of the global
financial market and the influx of international short-term capital into China, which
has caused a huge impact on the stable development of China's economy. At this time,
should we stop the process of capital account opening in order to protect ourselves?
The answer is No. The key to the coexistence of advantages and disadvantages of
open capital account lies in how to prevent and reduce risks and ensure the stable
development of macro-economy. This paper will start with the advantages and
disadvantages of capital account opening, analyze its impact on China's economy, and
put forward policy suggestions to maintain China's stable development and steadily
promote capital account opening under the background of financial crisis.