In the Chinese language, characters, words, and phrases are often indistinguishable. Words may be defined as smallest units of meaning in sentences. By relying on this definition toge-ther with some guiding rules, Frequency count of 40,000 Chinese words (Liu, Chuang, and Wang, 1975) obtained approximately 40,000 Chinese words. Propositions may be defined as smallest descriptive units in sentences consisting of two parts: one part describing and one part being described. By using this definition together with a number of guiding rules. Frequency count of Chinese propositions (Liu, and Wu, in preparation) obtained on the average six propositionsper sentence. The proposes of this article were to present in detail the guiding rules and procedures used in these computational analyses of Chinese words and propositions.