Liberalize capital account controls only when required

China should liberalize its capital account controls and foreign exchange rate controls at a speed that benefits its economic growth, says Yu Yongding, a member of the Chinese Academy of Social Sciences.

Yu, who is also a senior fellow with the Institute of World Economics and Politics, a Chinese government think-tank and research center, says it is wrong for China to strive for rapid renminbi internationalization without questioning its effect on the Chinese economy.

"We often forget why we hope to internationalize the renminbi in the first place, but it is important to remember this because renminbi internationalization policies should only be pursued to aid long-term economic growth," Yu says.