Tsingtao Brewery's shares were suspended from trading in Hong Kong 11/9/07, pending a major announcement. We suspect the announcement is good news – possibly a major expansion into Thailand. Tsingtao, is the best-known premium beer in China. What you might not know is that Anheuser-Busch is Tsingtao's largest shareholder with a 27% stake. In 2004, Anheuser-Busch bought 100% of the fourth-largest brewer in China – Harbin – for $700 million. Harbin now produces Budweiser-branded beer.

Bud owns both 27% of the most popular premium beer brand in China (Tsingtao) and 100% of Tsingtao's most important foreign rival (Budweiser). That's the king of beers. Investing in China via exceptionally well-managed U.S. companies will prove to be more rewarding than trying to figure out which Chinese-managed firm will be around in 10 years.