We're really seeing more and more Chinese companies listing on U.S. exchanges and, although investment risk is high, the growth stories are compelling.

One company that I've mentioned before in this column is Focus Media Holding (NASDAQ/FMCN). This company listed its shares on the NASDAQ in the middle of 2005 and the stock has been a rocket ever since. I guess if you can handle the risk within the context of your entire portfolio, there may be room for a basket of Chinese holdings.

In Focus Media's case, the company's business plan just makes sense. The company wants to be the biggest and the best "out-of- home" advertiser aimed at white collar workers in China.

The company just announced a big acquisition and the stock market loved it. The company is also selling its own shares like mad, raising capital for its future expansion. Not surprisingly, the market is eating up these new shares as well.

I recently came across another exciting Chinese company, Actions Semiconductor Co. Ltd. (NASDAQ/ACTS). This company only recently completed its initial public offering on the NASDAQ.

Actions Semiconductor is a "fabless" semiconductor company, which means that it doesn't manufacture its own silicone wafers for use in consumer electronic products. The company contracts out most of its manufacturing, and its products go into personal consumer electronic products like MP3 players. The company has big plans to serve its own market, as well as markets in Brazil, Russia, and India.

It really is an exciting time for capitalism in China. As investors, it makes good economic sense to go to where the big action is, and most certainly, the big action is in China right now.

When you have the majority of a country's people bent on working hard to improve their economic lives, innovation and entrepreneurialism follows. Perhaps this is why many schools in North America are no longer teaching students to learn Japanese, but Mandarin instead.