The investment on basic infrastructure grew fast between January and April; this shows that investment plays a positive role in strengthening the economy.

ANBOUND's research team is of the view that in the long run, China’s economy should solve the structural problems through effective supply-side reform, however in the short-term, it is particularly important that China should reduce investments that are ineffective or those with low efficiency and improve further on the essential investments.

There is no contradiction between promoting reforms and ensuring steady economic growth, the key is to stay balance.

In the short run, not only that China should maintain the essential public investment, the government should also take effective measure to increase private investment.