If you are familiar with China you should know how much of their "infrastructure" investment particularly in real estate has not paid off and only possibly lead to a property bubble. The best example of this is Japan. Look at how much they invested in infrastructure through government spending (Their streets and airports are beautiful and clean) and look at where it has gotten them (dipping back into recession after 25 years and countless dollars spent). Free markets spend money more efficiently than governments, that should be a well known fact. Yet people and governments everywhere are convinced they can borrow from others and then spend themselves out of slow growth or recession. Yes, continually increasing your debt and spending it will stimulate growth in the short term, however, anyone who understands debt understands that they not only have to pay that back at some point but with interest as well. And when you have an economy and companies dependent on this credit expansion and it suddenly stops or worse, reverses, then you are in for quite some pain.
That being said, China still has so much money they can afford to be a little wasteful and not worry too much, however, but they have to be careful. And I think they are starting to learn their lesson and have said they are pushing for a more "innovation" economy now.
