For several years, the China American Psychoanalytic Alliance (CAPA) has provided treatment, training, and supervision to Chinese mental health professionals over the Internet. The lack of Chinese analysts and mentors has created an intense demand for psychodynamic psychotherapy training and treatment that CAPA is addressing using Skype™ and other distance communication technologies. This article describes the project, its history, scope, and activities, and the experiences of CAPA teachers and clinicians in exploring and developing the usefulness and power of this very new teaching method. Some particular characteristics of Chinese culture have become apparent as a result of the teaching experience. Aspects of the transference and countertransference that are shaped by the virtual nature of the technology are discussed, using case material. Our hope is that, in helping to train our Chinese students in psychodynamic psychotherapy, they will go on to train future generations of clinicians. This model of teaching and training could also be applied in other underserved areas.