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In choosing books for the annual list, reviewers consider literary quality and excellence of presentation as well as the potential emotional impact of the books on young readers. Other criteria include credibility of characterization and plot, authenticity of time and place, age suitability, positive treatment of ethnic and religious differences, and the absence of stereotypes. Each book accepted for the list is read and reviewed by at least two committee members and then discussed by the committee as a whole.

Kuan Yin is listed in the Folklore and Fairy Tales section, highlighting Diversity and Read Aloud for a 6-8 age range.