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With the word-based theory of natural language processing, a word-based Chinese language understanding system has been developed. In the light of psychological language analysis and the features of the Chinese language, this theory of natural language processing is presented with the description of the computer programs based on it.

The heart of the system is to define a Total Information Dictionary and the World Knowledge Source used in the system. The purpose of this research is to develop a system which can understand not only Chinese sentences but also the whole text.

Liu's inference is a process of deriving consequences from uncertain knowledge or evidence via the tool of conditional uncertainty. Using membership functions, this paper derives some expressions of Liu's inference rule for uncertain systems. This paper also discusses Liu's inference rule with multiple antecedents and with multiple if-then rules.

With the word-based theory of natural language processing, a word-based Chinese language understanding system has been developed. In the light of psychological language analysis and the features of the Chinese language, this theory of natural language processing is presented with the description of the computer programs based on it.

The heart of the system is to define a Total Information Dictionary and the World Knowledge Source used in the system. The purpose of this research is to develop a system which can understand not only Chinese sentences but also the whole text.