There are three main risks that come to mind: foreign exchange risk, political risk, and capital market risks. Political risks concern likelihood of fiscal and monetary policy changes due to sudden government changes. In China's case the WTO accession has an obvious long term impact. In terms of foreign exchange, profit repatriation is highly dependent on the regulations governing this area. Foreign exchange controls affect payments for imported goods and for services rendered outside of China, however there is a system of "current account convertibility", which entitles foreign investors to remit, from its FIE, its share of after tax profits.
