China has a series of policies to deal with Federal Reserve's QE withdrawal. However, ANBOUND’s senior researcher He Jun thinks that the biggest impact of the withdrawal is the changes of liquidity environment. For China, the biggest impact would be significant capital outflow from the country. This will overlap with the tense condition of domestic capital and increase the fluctuations of RMB exchange rate as well as domestic interest rate. Thus, China needs both international and domestic policies to deal with Federal Reserve’s QE withdrawal.