The Chinese market is appealing, but its legal environment is very complicated and full of nooses that await investors. This book intends to provide an in-depth analysis of the legal environment and its hidden risks for foreign investment. It covers two basic investment modes which are green-field and M&A and almost all concrete legal issues including political risk, tax, land use rights, labour etc. Among them, three chapters focus on the legal system and its risks for the foreign investment in three special industries as private education, water market and insurance. The last chapter illustrates the inside operation mechanism of the main dispute resolution channels available in China. The author provides risk management measures to stave off legal risks, and the last section of this book especially points out the shortcut ways to manage the future under the power oriented economy of China.