At the invitation of the Chinese Ministry of Health, the author visited China earlier this year. He describes the structure and organization of the Shanghai Psychiatric Institute, a therapeutic community in which the staff and patients work together in a classless social organization, which is part of a medical system that blends the modern and the ancient traditional medical practices. The author presents brief general information on acupuncture and describes its use in psychiatry, but stresses the preeminence of group activities in the therapy of mental illness.Abstract Teaser