Karlan points out that China's Tier II and III cities in the center of the country haven't yet developed economically because they aren't close to seaports or international airports so he expects the impact on the country as a whole will be minimal. He estimates 90% of China's economic activity is concentrated along its eastern seaboard while Chengdu and other earthquake-zone provinces account for just 2.5% of the nation's GDP.

"The foreign investment impact as a result of the earthquake in Chengdu is relatively small," Karlan says. "This region represented a small portion of foreign investment and was likely to continue that way for several years."

The Chinese government's immediate response and openness, though, has shown a new side to Westerners. Karlan says many Western investors have long held a bias toward China, stereotyping it as cold and closed. "At Investors, we looked through that and understood the Western bias isn't always the right one," he says.

As media worldwide have noticed, protests over the upcoming Olympics, intended to showcase China to the world, have silenced since the earthquake. The change in perception resulting from the earthquake is "a small, small positive," Karlan says. "The openness of the response and the commitment of all elements of China's government are apparent. China is no longer seen as cold."