This unit, intended for use with secondary students, presents background information on the Chinese economy. The subject warrants serious consideration because Sino-American trade has grown remarkable in the last decade and economic events occurring in China have the capacity to affect events in this country. The unit contains a six part narrative which students are to read. The parts are: The Setting in 1949: A War-torn and Shattered Economy; The First Five-year Plan; 1953-1957; The Great Leap Forward, Catastrophe, and Recovery, The Cultural Revolution; The Decade of the 1970s: Recovery from the Cultural Revolution, the Death of Mao, and Major Policy Changes; and Conclusion. In the introduction the author suggests the use of visiting speakers, audiovisual displays, and student presentations to supplement the reading materials. A list of films on the Chinese economy which are available from the Media Center of the University of Michigan concludes the lesson. (Author/RM)