ABSTRACT
The scale of fixed assets investment has been frequently beyond control over the past 30 years in China. The fixed assets investment in China has gone through seven cycles over the past 32 years. Troughs of fixed assets investment growth, which is a negative growth, gradually move upward in each Five-year Plan. Under the capitalist system, the cyclic economic crisis leads to periodicity of massive renovation and investment of fixed capital. The periodicity of fixed assets investment in China is not rooted in the socialist economic system itself. Fixed assets investment must be guaranteed by the supply of the means of production mainly through heavy industry. Most fixed assets investment comes from available shares of national income savings. China is now in the process of economic reforms with a focus on urban areas. This will surely bring changes to the economy and further affect the periodicity of fixed assets investment.
