This is clear: Business in China is booming.

This gets complicated: Translating that growth into investment gains.

But that's not to say it can't be done. And with China giving every indication of becoming the world's next economic giant, it's time to consider whether and how to expose your investment portfolio to that country's high-revving growth engine.

The statistics are startling. China's gross domestic product is growing around 10% annually, compared to 3% or so in the United States. The consumer's wide-open wallet is driving the U.S. economy, but consumer-spending growth in China clocked in at 13% last year, compared to 8% in the United States. China's middle class, now estimated at 150 million to 200 million people, is expected to double in size in the next five years.

Investors who have taken the plunge in China in recent years have been well rewarded. The average mutual fund that invests in China and the nearby Asian Tiger nations has gained 17.5% over the past three years, far better than the S&P 500's 5.4%.

But this isn't the first time China has seen rapid growth. The country experienced a major investment boom in the early 1990s. But China added too much manufacturing capacity, too fast, and the bubble burst in 1994-1995, sending the economy into a tailspin. The Hong Kong-based Hang Seng index lost 31% in 1994 alone.