Literacy in China is mainly concerned with illiteracy in rural areas. Therefore, reforming literacy education is largely a problem of how to eliminate rural literacy within the general framework of reform in contemporary China. From 1949 to 1988, the illiteracy rate among the population decreased from 80 percent to 20 percent. There are still about 230 million illiterate people among the total population, including 72 million between the ages of 15 to 40. Among the positive factors involved in literacy education in China are: that the peasants understand that production must rely on science and technology; rural living conditions are much improved; primary education is universalized; and there is a complete system of rural education in place. Among negative factors are that the majority of illiterates are disadvantaged; those who need literacy education live in remote places; some literacy educators have low morale; and in some places there are insufficient resources for literacy education. An ordered system for literacy education has been established. Social forces at work for literacy include the primary schools, the Youth League, and women's organizations. Learners are asked to not only learn the three Rs but also some practical skill. Among the kinds of literacy education are: spare time literacy education such as night schools, literacy study groups, and individualized training; a combination of spare-time and full-time education; and complete full-time study. The policy of control involves the state laying down general objectives and the local governments determining their own policies and methods. (CML)