A report on China's growing anti-Soviet policies since the death of Mao Zedong, the potential for a Sino-Soviet war, border disputes with the Soviet Union, and Chinese relations with the United States, Western Europe, Japan, Southeast Asia, and the "Third World." They also discuss the Soviet strategy in response to these events.

A description of Chinese domestic policy, specifically the continuation of Maoism, differences in policy held by political leaders (Hua Guofeng and Ye Jianying), and the campaign against the Gang of Four. China's foreign policy, specifically towards the Soviet Union, USA, Japan, and India is also discussed.

Discusses the joint efforts by Chinese and American leaders to promote a better relationship between these two countries, at the expense of the Soviet Union and of communism. The U.S. seems to be trying to capitalize on a growing “internal stability” in China, and the U.S. is even now selling equipment to China. The Soviet Union does not believe that this alliance will prove powerful enough to significantly impair other Socialist countries, but their alliance should also not be ignored.