This report, issued after the seventh Interkit meeting in Budapest, addresses unsolved socio-economic problems and internal party disputes in China. The new military strategy of the People's Republic as well as its economic development are examined. Beijing's foreign relations with Western countries, especially with the US, are considered to be detrimental to international détente. The attendees condemn China for stockpiling nuclear weapons and missiles in preparation for a military confrontation with the Soviet Union, for extending its influence in developing countries, for strengthening the position of NATO, for interfering with the domestic policies of Vietnam, and for supporting the military junta in Chile.