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China has made remarkable yet uneven progress in social development. This book analyses China's achievements and problems in social development from the perspective of social investment. Social investment has gained popularity in Europe as a new social policy paradigm. It seeks to use government budget more efficiently and effectively by investing in people rather than 'social consumption'.This book focuses on a few policy areas central to social investment and capacity building, including education, technical training, R&D, and the hukou reform. It also analyses challenges and limitations of China's social investment policies. It sheds light on the most notable feature of China's social investment regime, which is the concentration of resources, privileges, and policy support on sectors and institutions with more growth potential. This helps to explain why China's progress in social development is remarkable but unequal.