Once forbidden but now desired: Foreign participation in China’s securities markets, formerly sealed off to outsiders, is an evolving phenomenon of the past decade. This Note discusses the potential impact of this recent foreign involvement. First it describes the history and structure of the Chinese market, including the types of shares available and the new opportunities for participation by foreign investors. Next it critiques the interference by the Chinese government, which has created distortions and inefficiencies in China’s macroeconomic structure, resulting in uneven consistency and volatility of its stock exchanges. Then it discusses the legal risks of investing in China, bringing up issues of weakness in corporate governance, private securities litigation, and judicial enforcement. Lastly, it offers a comparative study between the Chinese and Taiwanese markets, focusing upon each market’s respective Qualified Foreign Institutional Investor scheme, as a means for predicting China’s economic evolution.