Abstract: Despite various challenges, China's manufacturing sector has shown resilience in the last three years. How do we interpret such success, and will the investment growth continue? Also, we must consider if there is a risk of excessive investment and overcapacity. To do this, we first look at how manufacturing in developed countries improved at similar stages, providing a basic understanding of manufacturing investment and progress. Then, we examine if China's manufacturing growth follows these established patterns and rules. Lastly, we address the potential issue of manufacturing overcapacity.
