Hardly a week goes by these days without Japanese companies advancing into China to tap its low labor costs or to gain a foothold in the huge market.

But China's economic future may not be so rosy, given the potentially massive risks that experts say exist both on the micro- and macroeconomic levels of the communist country.

On the microeconomic level, many Japanese companies have been plagued by repeated abrupt -- and sometimes arbitrary -- changes in the legal system that often disrupt their business plans.