ABSTRACT
This chapter analyzes various stages within a cycle of fixed assets investment in order to understand the characteristics and causes of periodicity in detail. China has gone through seven investment cycles altogether during the 33 years from 1953 to 1985 in view of the changes favorable or unfavorable to the growth of total fixed assets investment in all economic organizations of public ownership each year. Each cycle generally includes four stages: recovery, peak, continual growth with a reduced pace and trough. At the recovery stage various influences begin to emerge altogether. At the peak stage various influences rise to push investment growth to the peak. At the continual growth stage, various influences begin to drag down the pace of investment growth. China is presently carrying out all-around reforms of its economic system and structure. The economic reform of socialist countries is intended to further advance the planned commodity economy.
