Total investment in fixed assets has rocketed to 13,
700 RMB billion in 2007, a 112 times increase
from a mere 123 RMB million in 1982. This
exponential increase is largely due to the rapid
development of China over the years in various
sectors such as education, transportation,
infrastructure, communication, tourism etc.
Investors have gained tremendous confidence in
China. People are tapping on China for her large
potential domestic market. Furthermore, China has
recently surpassed Germany and become the world's
third-largest economy, closing rapidly on Japan. All
these factors encourage investors to invest in
China, and thus, explaining the sharp increase in
the total investment in fixed assets. Another major
event that displays remarkable capabilities of China
would be Olympics 2008 held at Beijing. Its
resounding success would also send out positive
messages and signals to would-be investors.
Therefore, the trend in fixes assets would be
expected to continue. However, in light of the
current financial crisis, its rate of growth would
be decelerated temporarily.
Below is the chart of China fixed assets investment and trends from year 1982 - 2008:
