An article from the WSJ yesterday discussed that while some Chinese companies have made investors scared to test the waters, there are those that remain worth it. Guerilla Capital's Peter Siris makes it well known that he thinks while there are some issues in some Chinese firms, the fundamentals of some of these companies do not lie.
When I look at various single companies, I check to see that they are in SEC compliance, have become listed through a scrutinized process, and have real revenue and real profits. As long as these things are consistent, there is not a need to lump all of the companies together. Using glittering generalities to encompass an entire group of companies doesn't work, such as Chinese companies suffer from poor accounting regulations. While there are some that do and some that don't is the more prevalent trend, some is not all.
I think that if you look into where you put your money and do some due dilligence, then investing in China is not only smart, but a move that should be made in order to row you own personal wealth. Ideally, every investment you make is safe since it must pass through some part of the SEC and there are normally others involved.
In reality, investments need to be chosen like buying a house and then held onto so that the market as a whole will see the value in the company that you have found, like turning coal into a diamond.