STREET CRIME AND IMPRISONMENT ARE RARE IN CHINA, PRIMARILY BECAUSE OF THE FOCUS ON A STABLE COMMUNITY LIFE. FAMILIES WILL LIVE IN THE SAME HOUSE FOR A LIFETIME AND NEIGHBORS WHO HAVE KNOWN EACH OTHER FOR YEARS ARE ORGANIZED TO DEAL WITH COMMUNITY DISPUTES, CONFLICTS, AND GRIEVANCES. NINETY-FIVE PERCENT OF ALL DISPUTES ARE ALLEGEDLY RESOLVED WITHOUT USE OF THE FORMAL COURT STRUCTURE. COURT INTERVENTION IS INITIATED ONLY UPON THE REQUEST OF COMMUNITY DISPUTE RESOLUTION GROUPS. THE PRIMARY PURPOSES OF BOTH THE COMMUNITY GROUPS AND THE COURTS ARE TO FIND OUT WHY THE OFFENSE WAS COMMITTED AND TO DEVELOP A PLAN TO PREVENT FUTURE OFFENSES. EDUCATION HAS AN IMPORTANT ROLE IN REHABILITATION, SINCE THE CHINESE BELIEVE THAT CORRECT THINKING PRODUCES CORRECT BEHAVIOR. THE TEACHINGS OF MAO ARE THE SUBSTANCE OF THE EDUCATIONAL REHABILITATION. FOR THE RECALCITRANT FEW WHO ARE SENT TO PRISON, WORK AND EDUCATION CONSTITUTE THE PROGRAM. PRISONERS ARE GENERALLY HELD UNTIL THE AUTHORITIES ARE SATISFIED THAT THE DESIRED CHANGE IN THINKING AND BEHAVIOR HAS OCCURRED. SIMILARITIES BETWEEN THE CHINESE AND AMERICAN SYSTEM OF JUSTICE ARE LENIENCY TOWARD DEFENDANTS WHO CONFESS THEIR CRIMES, AN EMPHASIS UPON BACKGROUND AND PRIOR OFFENSE RECORD IN SENTENCING, AND AN EFFORT TO RESOLVE DISPUTES SHORT OF COURT ACTION AND IMPRISONMENT. A BIBLIOGRAPHY IS PROVIDED. (RCB)