When investing in China, one only needs to understand a few key elements to succeed. The primary element is business fundamentals; the next is the use of political party power. Put the two together and an investor will soon understand that the entire concept of the Chinese transformation to a semi-capitalistic system rests in the retention of power. Those that had it in the past do not want to lose it and position themselves to retain it. To this end, an investor in China should look at a company’s fundamentals first and then move onto who is in charge or who knows who in the overall Chinese political/business model planning structure. If both fall into line, profit and stability will most likely reign.