Is the investment rate in China really so high

In recent 20 years, China has witnessed rapid economic growth with industrialization and the process of initial urbanization. As a result, China’s economic growth has been labeled as investment- driven. With consistent economic growth,China’s economic structure forms the pattern of high investment and low consumption gradually. Against such background, the theory of over- investment in China or even the viewpoint of investment collapse in China started to appear frequently. Overheated investment in China is a false appearance. There is severe overestimate of investment in China. If we exclude the overestimate part,China’s economic structure will become more proper, the investment rate will be improved further. Meanwhile, the future urbanization process in China and the process of de-industrialization of manufacturing industry need large amount of investment to drive. Therefore, against the background of overestimate, investment is still an important driving force for China’s economic growth in the future.