It is easy to see why some people might get a little carried away in their predictions on the Chinese economy:

• According to the state-owned China Internet Network Information Center, China's total number of Internet users rose 53% to 210 million at the end of 2007 up from 137 million at the end of 2006 and 162 million in June 2007.
• China's 2007 addition to its existing power grid is more than the entire installed generating capacity of the United Kingdom.
• 10 years ago, China has about 10 million cell phone users. Now, it has more than 500 million cell phone users.

There are only a few examples of China's tremendous growth. Although such shear growth may excite you, there are a few realities you should be aware of:

• Some sectors are mature, resulting in high barriers and no space for new entrants.
• Sectors that do not have high barriers are often in a constant state of price wars, leaving little profit to be made for most players.
• Barriers in most sectors are designed to place you, as a foreigner, in a disadvantaged position.
• Although China has made many progress since joining the WTO, local authorities still put up many restrictions of their own.
• Local competitors are much better positioned than you at gaining the favor of local authorities.

Relax; there are still many great business opportunities in China for you for profit from, either directly or indirectly. Here is a simple list of some of the sectors with the greatest potential in China:

• Retailing sector
• Manufacturing sector
• Automotive sector
• Biotech and medical sector
• Chemical sector
• Construction and infrastructure sector
• Energy sector
• Finance sector
• IT/telecommunication sector
• Media and entertainment sector
• Education service sector