In 2007, more than three quarters of the total
investments in fixed assets in China are derived
from self-financed funds. 15% are from domestic
funds, while less than 10% are derived from state
budget and foreign investment.
There is a gradual increase in the amount of self-financed fund in
investments in fixed assets from 55% in 1981 to 77% in 2007. Investments in
fixed assets that obtain from domestic loans and foreign investment remains
relatively constant over the years. However, there is a downward trend from
funds deriving from the state budget from 28% in 1980 to 4% in 2007. This is
because the Chinese government has other pressing needs and macroeconomic
objectives such as reducing budget deficit, improvement in education, health
care and military defense. This decrease has been offset by rise in
self-financed funds. As the years to come, funds from foreign investments
would also be expected to boost up.
Below is the chart of total investment and trends in fixed assets in China by funds sources from year 1981 - 2008:
Investment in fixed assets by funds usage
Substantial amount of the funds for fixed assets are used for construction
and installation. However, the proportion of this amount is on a declining
trend over the years, from 72% in 1981 to 61% in 2007. On the other hand,
the amount of other expenses has been increasing from 5% in 1981 to 16% in
2007- an 11% rise in proportion of funds. Amount used in equipments and
instruments continues to stagnate.
Below is the chart of total investment and trends in fixed assets in China
by funds usage from year 1981 - 2008:
Remarks: others refer to expenses arising during the construction or
purchase of fixed assets other than expenses of construction and
installation, and fees of equipments and instruction.
