Is excessive domestic investment hurting China?

China’s economy finds itself in a difficult phase of restructuring: Economic growth is predicted to drop below seven percent in the years to come. For the Chinese government, public investment has always been an important means to counter economic difficulties. During the global financial crisis for instance, heavy public investment, credits and funds were provided in order to avoid recession. But will interference by the state continue to work as an efficient tool to create growth in the future?

In this China Monitor, the Mercator Institute for China Studies (MERICS) presents Carsten A. Holz's research on the impact that public and private investment has had, and continues to have, in China.