A year's study in China forms the basis of this report on China's economic backbone, on the new pattern, imposed by the war, of self sufficiency and industrial independence. It is a picture of migration to pre-industrial provinces, and their resulting modernization, the changes and reforms in many fields, agriculture and animal husbandry, mining and mineral resources, industrial development and industrial cooperatives, communications, foreign trade, government and finance, land problems, price movements, and living standards, democratization and centralization. Part II records, province by province, the events and achievements. You get a picture of the ingenuity and determination necessary for survival, of those things which are beyond the country's capacities, of the outstanding work to date, of predominating questions, of patriotism, that is not only a virtue but a necessity; that for the postwar world there will be permanent roots in the new environment, improved conditions will be maintained, light and heavy industries will be adjusted, and international trade established on better balanced planes. Background material for China today and China of the future for business and financial worlds and students of her history. Appendix and tables of statistics.....Dr. Freyn, Czech by birth, American citizenship, has six years residence in China as a background for this year in Chungking. He holds firm belief in China's future.