Playing Ball in the People's Republic

Editor's note: TheStreet.com's Ronna Abramson takes a look at the risks and rewards of investing in the booming economy of China. She also looks at IBM's venture capital plans and how Microsoft aims to gain a toehold there.

Just say the word "China," and investors and companies seem to start frothing at the mouth these days.

But be careful, because investing in China is not for the faint of heart. While the opportunities in a developing nation of 1.3 billion are undoubtedly mammoth, don't forget this is a Communist country, and consequently it presents some unique risks, seasoned experts caution.

"Investors beware," said Lip-Bu Tan, founder of the venture capital fund Walden International, which has been investing in China since 1994. "I think there is some hype here. People get too overexcited by China." ...