3. China's tight relationship with Africa Finally, and perhaps least known, is China's relationship with Africa. China has been working on trade relationships with Africa for years. Trade between China and Africa has climbed 10 times in the past decade, and economists forecast bilateral trade to reach $200 billion by the end of 2012. China is reliant on African commodity exports and Africa has an insatiable need for Chinese industrial equipment and materials. Chinese President Jintao has committed to loan an additional $20 billion to Africa. This should certainly keep the mutually beneficial relationship humming along. Obviously, China has its issues. One of the major issues is corporate malfeasance and fraud. Recently, Rino International ( RINO) was a prime example. In 2011, the company was investigated by the U.S. Securities and Exchange Commission after allegedly releasing false financial statements and engaging in foreign bribery. This is why I prefer to mitigate this risk factor by diversifying my investments through exchange-traded funds (ETFs). This tactic eliminates single-company risk, while providing exposure to the overall economy. As such, here are three beat-down Chinese ETFs with powerful upside potential: 1. Global X China Industrials ( CHII) This ETF tracks the Solactive China Industrial Index. The index is made up of industrial equipment, transportation, building materials, engineering, construction and industrials. In other words, it's a play on the industrial sector of China. It's off 30% this year due to the supposed Chinese slowdown and eurozone crisis. But the growth of the Chinese middle class, infrastructure building and, most important, African trade makes this ETF a bargain at these levels. Buying on a break out close above $10 with stops at $10 makes solid technical sense right now. A move above $12 appears likely by the end of the year. 2. iShares FTSE China 25 ETF ( FXI) This is by far the most popular and heavily-traded Chinese ETF. It has more than $5 billion in assets under management and on average trades 18 million shares a day. This concentrated ETF follows the FTSE China 25 index. Its top holdings include blue-chip stocks like China Mobile ( CHL) , China Construction, Bank of China and CNOOC ( CEO). Shares have recently bounced off their bottom, breaking above the 50-day simple moving average.