Abstract: The discussion on Public decision—making model of Chinese government is a popular issue among scholars who study Chinese government. The effective role of infrastructure，considered to be the validating factor of the level of economic growth achieved, is also an important issue for government decision—making. Considering the complexity and multidimensional nature of the decision—making environment within and outside the government caused by economic restructuring and government reforming, scholars have different understandings and perspectives on the role of local government and the infrastructure investment patterns of local government. This has been a source of intense debate within the academic circle. This paper employs literature analysis method and categorizes their arguments into three dimensions: "decentralization—incentive", "promotion—competition" and "institution—market". Existing literature on each of the individual dimensions will also be reviewed to provide a holistic picture of this research area. Additionally, this paper also lays out the author’s arguments for this research topic in terms of abovementioned literature review.