A new conceptual framework for comparative analysis of distance higher education systems, called the Systems Analysis, Typology and Shaping Mechanism (SATS), was used to compare the structures and functions of the DE systems of Australia (which includes external studies and open learning components) and China (which includes correspondence education and radio and TV university education components). The SATS is designed to enable researchers to analyze individual DE systems in contextual and internal dimensions at three levels (national, institutional, and learning group) and in terms of two major subsystems (administration and operation) and to examine the endogenous and exogenous links and interrelationships thereof for each system. The comparative analysis confirmed that, although both the Australian and Chinese systems of DE have been strongly influenced by the model of DE exemplified by the British Open University, each country's DE system has also been profoundly influenced by its unique needs and histories, including its level of industrial development (which is examined in terms of Fordist and neo-Fordist models). The analysis also confirmed the SATS framework's usefulness in comparing different DE systems. (Thirty-nine tables/figures are included. Contains 261 references.) (MN)