What are the main risks in investing in China real estate?

I am interested in learning about new policies that limit foreign investment

No matter what progress they are making towards capitalism, it is still a Communist government...at the whim of a local or national party committee, for any reason or no reason,whatever " belongs" to one person can suddenly belong to the " state" or the " party". Your investment is suddenly zero.
Nothing like that will happen before the Olympics, but if times turn bad or even mediocre down the road...if a province needs some income the business that you now own could easily be " nationalized"...for the " good of the people" of course.
Not predicting or anything just telling you what the meaning of the word " risk" is...when it comes to communist or socialist government ( ask the oil companies that now stand by and watch Chavez run the wells and refineries that they spent years and billions building)

The rules and regulations.

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