Beijing's changing investment equation

China's leadership seems to be coming to grips with the idea that not all investment is good investment. The question is whether it can overcome the vested interests and change tack.

This is part II of an edited extract on China's optimal investment level. Part II (Taking stock of China's investment frenzy, June 14), which focuses on the differences between the two models of investment, can be found here.

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This is part II of an edited extract on China's optimal investment level. Part II (Taking stock of China's investment frenzy, June 14), which focuses on the differences between the two models of investment, can be found here.

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