In the first half of 2012, China's fixed asset investment, or FAI, jumped by some 20 percent year on year, while the FAI in the eastern, central and western areas were up by some 19 percent, 25 percent and 24 percent respectively on an annual basis.

Wang Wenxiang, Deputy Director of Institution of Investment, National Development and Reform Commission, said, "The growth rate of FAI was faster in the western and central areas than in the eastern area. A main focus was the construction of infrastructure, especially in the central and western areas in projects of agriculture, water conservancy and environment protection."

In provinces like Zhejiang, Jiangsu, Guangdong and Shandong, investments were made in projects of industrial upgrading and technological transformation.

Cheng Huifang, President of Zhejiang Society of Finance Engineering, said, "The investments are showing some good changes. More investments are put into transforming the traditional labor intensive industries into modern manufacturing industries."

Besides government investment, private capital is also playing an increasingly important role in the country's FAI.

Data showed that China's FAI with private capital in the first half of the year was more than 9 trillion yuan ($1.41 trillion), occupying over 62 percent of the total FAI amount.

Experts say the government will further remove impediments to private investment so that it can flow more easily into the real economy.

(CNTV.cn July 31, 2012)