Although less developed economies are often short of capital during the course of economic development, China seems to be an exception. In order to promote economic growth, China has invested substantially for several decades. The recently announced stimulus package will trigger a new round of investment boom.  Gross capital formation as a proportion of China's GDP has maintained a steadily high level since 1978 when economic reform was initiated. The overall average during the period 1978-2007 was about 37.5 percent.  However, China's investment has suffered from low efficiency. It is estimated that the overall weighted mean level of investment efficiency among China's regional economies is about 66 percent implying considerable scope for improvement. In general, the coastal regions are more efficient than the central and western regions. Therefore, it is necessary for Beijing to adopt policies focusing on improving investment efficiency such as diverting more resources to the less developed Western regions and to improve the environment for both foreign and domestic investment.

In early May 2009, the Chinese State Council announced and approved "Several Opinions Concerning Support for the More Rapid Establishment of Economic Zone on the West Coast of Taiwan Strait (EZWCTS) by Fujian Province." This raised the EZWCTS officially to state-level to become another economic growth engine of China. The short-term goal of the EZWCTS is to increase local GDP of Fujian province from 755 billion yuan in 2006 to one trillion yuan in 2010. By enhancing the modernisation of fundamental facilities and integrating resources across the strait, a more dynamic and harmonious region and a more developed and prosperous economic belt along the west coast of Taiwan Strait is set to emerge in the near future.