Since the global financial crisis, China has accelerated the process of capital account liberalisation and RMB internationalisation. Financial openness has increased significantly. However, over the past few years, China has used both market intervention and capital flow management measures to deal with the shocks resulting from intense capital outflow.In the future, China should properly separate macro-management and micro-regulation, and establish a dual-pillar cross-border capital flow management framework. Additionally, capital flow management, especially capital control, should only be temporary measures used to buy time for other reforms.