This paper applies Jones' test for the empirical validity of AK‐type models to the Chinese economy over the period 1952–2006 (Jones C. I., Quarterly Journal of Economics, 110, 1995a, 495–525). We aim to establish whether large permanent movements in the physical investment rate cause permanent movements in output growth. The evidence indicates that the one‐sector AK model cannot be rejected. We also find that augmenting the model to allow for transitional dynamics—via imbalances in factor endowments, structural transformation, and R&D‐based technology transfer—does a better job in describing China's growth dynamics than the basic AK model. (JEL C22, O41, O47)