BEIJING—The Chinese call it “daxing tumu,” being keen on large-scale construction. It seems that wherever one looks in this country someone is building a mighty new bridge, office tower, airport, freeway or aircraft hangar, more physical capital for the roaring economy.

BEIJING—In early 2008, Avic I, as it was then, announced it was setting up an airline that would buy its regional airliners, a move that had many industry watchers perplexed. To any trenchant doubter of China's future in civil aeronautics, it must have seemed that the product, the 50-60-seat MA60 turboprop, was so uncompetitive that Avic I could only sell it to itself.

“Fitted for but not with” is not a popular phrase with sailors. The idea of building a warship with only space and power reserves for important systems is attractive to budget managers, but it can leave navies facing sudden wars with weak and vulnerable ships. Yet when such ships' reserves are put to good use, the result can be a remarkable transformation. Australia's eight Anzac-class frigates are becoming a model example of that, as Canberra moves ahead with the next stage of their upgrade program.