The sixteen participants played in four groups of four in the first round. The group winners were set for the quarter-finals. The runners-up and thirds reached the round of 16. The winners of the quarterfinals determined the new world champion in the semifinals and final. The remaining teams played the other placements.
The hosts and defending champions China as well as the seven best teams from the last World Cup were automatically qualified. There were the second Cuba , the third Peru , the fourth GDR , the fifth Brazil , the sixth Soviet Union , the seventh Japan and the eighth South Korea . The top-placed participants in the current continental championships who did not belong to the top 8 of the previous World Cup were also seeded. These were Italy ( Europe ), Canada ( NORCECA ), Argentina ( South America ), Taiwan ( Asia ) and Egypt ( Africa ). The remaining three starting places were awarded in a two-part qualification. Initially, twelve teams competed against each other in six pairings with a return game. In a tournament with two preliminary round groups and one final group, the winners met six teams that had been selected as hosts (Spain) or because of their placement in continental championships. The three best teams in this tournament qualified for the World Cup.