The breakneck speed of China's development and growth since the introduction of its "open–door" policy in 1979 has set the stage for what many believe will be the emergence of China as the next economic superpower. Already, the Chinese economy, measured in terms of purchasing–power parity exchange rates, is exceeded only by those of the United States and Japan. A market of 1.2 billion people with an estimated effective per capita income of $1,800 per year, a historically high savings rate of 3 5 percent of GNP (compared to a U.S. rate of 15 percent), real growth rates of 10 percent per year, and the need for major infrastructural investment does indeed present a very attractive proposition. Assuming a continued growth rate of 6 percent per year, China's economy would exceed that of Japan by the year 2000 and that of the United States by the year 2030. But can China continue on this path? Is the investment climate in China really ripe for serious consideration by foreign investors?