China's economic reforms will speed up the development of the new, commercial China, and totally alter the face of the global market and investment flows.

Some of the knock-on effects of these changes can be predicted, Robert Broadfoot, managing director Political & Economic Risk Consultancy Ltd, told the audience at the Chamber's China Business Conference on November 5. Other changes run the gamut from "black hole" to "bonanza."

Some of the foreseeable changes include the shift in trade and investment from Southeast Asian nations to China, which is expected to gain steam in the coming years. Part of the shift is based on the perceived potential of the Mainland market, but also, recent terrorist activities in Asia have made China seem like a much safer place to do business.

Second, is that there are going to be more entry and exit points. Hong Kong, which has long acted as the main door into China will, have to work harder to attract business as more gateways are unlocked.

Business between Japan, Korea, Taiwan and China is expected to skyrocket as huge investment flows in these areas start to change. As manufacturing shifts from Japan and Korea to China, their trade balances with the United States and Europe will look healthier. China, on the other hand, will have to deal with the net impact that its growing surplus will have on its trading partners.

While most big companies tend to approach the China market as individual markets by province, its entry into the WTO is expected to resolve many of the current logistical problems, which will allow businesses to look at China as one big market, Mr Broadfoot said.

The two biggest uncertainties in China, however, are to what extent will foreign investors be allowed to access currently restricted sectors? And where is all that invested capital going?

"A lot of people talk about how fast China is growing, but the big question is who is making money? Where are the profits?" he asks.

"When you look at the growth, impressive as it is, you have to ask what have you been doing with this money? So how do you invest it in a manner that will earn an attractive return?"

For the future, Mr Broadfoot outlined a few scenarios. Many companies that are investing in the Mainland believe that China is the greatest place to make money in the world today, and if they are not there, they will lose out to their competitors, Mr Broadfoot said. Moreover, as the country develops, companies believe they will make more money.

"We call that our bonanza scenario," he said.

Another scenario is Jurassic park, in that China's current legal system cannot be depended upon to resolve difficulties, so companies are content to just slog it out. More often than not, it is the larger firms that win these battles.

The scenario that everyone is hoping will not happen is the black hole.