Robert Hsu is the founder and CEO of Absolute Return Capital Advisors, and is the editor of three successful newsletters—China Strategy, Asia Edge and Inside China Dispatch. His most recent book, China Fireworks: How to Make Dramatic Wealth from the Fastest-Growing Economy in the World, is focused on the best ways to profit from China's economic growth.

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We are deeply saddened by the tragic earthquake in southwest China.  Here is one of the many sites listing relief organizations to which you can donate.  This article was written before the disaster, and we are publishing it now, along with our prayers for the victims and survivors of this tragedy.The economic growth occurring in China today is astounding. The country has grown at rates of at least 11% for the past couple years, and this growth isn't anticipated to end any time soon.

China has quickly become the largest producer of steel, coal, clothing and toys, with exports to the U.S. alone growing by more than 1,500% in the past decade. With incredible growth like this, China's has become one of the greatest investment opportunities of our time.

Many investors follow the crowd, and listen to the so-called China experts and watch their hard-earned money go up in smoke. Investing in China is much less treacherous and easier to navigate if you know what to look for and what to avoid. It's all about making the right choices and understanding what is truly driving the economic growth in China right now.

China's Economic Growth Driver

Surprising to many of you, I'm sure -- it's not the Beijing Olympics. Sure, the 2008 Summer Games are propelling China into the 21st century, but it's not the main driver of growth for this country. The real growth driver is actually the Chinese consumer. There are 1.3 billion people who suddenly have the ability to create personal wealth -- and spend it, too.

China's emerging middle class went from living at subsistence levels to having the means to dine out at least once a week at a mid-priced restaurant in less than 15 years. And along with being able to eat out regularly, the Chinese consumer is also spending money on high-tech gadgets, like cell phones, homes and vacations. 

China is a vast country and not every Chinese person in every region is buying the same things or can afford to buy the same things. But in the more affluent regions of China, the consumers' purchasing habits are incredibly similar to the rest of the world.

So there are many things that China needs to better serve and meet its citizens' needs and desires. Just to keep the nation fed, China imports an incredible amount of livestock and poultry, as its farmland has decreased due to significant factory expansion. And this is just one example.

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