Relaxing interest rate controls is a key part and an important goal of interest rate liberalization in both the Chinese and global context. Different countries have different approaches to interest rate liberalization; some liberalize the interest rate quickly, while others do it gradually after taking certain steps. China has adopted a measured approach. After removing controls on its money market rates, bond market rates, and foreign currency deposit and loan rates, it relaxed control of lending rates in July 2013 and lifted the cap on deposit rates in October 2015. Therefore, China has basically removed regulation on interest rates, marking an important milestone in the process of market-based interest rate reform. This chapter provides a comprehensive and systematic review of China’s practice in relaxing interest rate controls to provide an understanding of the principles, approach, sequence, and pace of the reform measures.