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A phonetic compound consists of a semantic radical and a phonetic radical,
semantic radical indicates its semantic field and
phonetic radical its pronunciation.
The meaning component of
semantic-phonetic compound Chinese character is also called
'radical'. For example, ' 足 ' is a popular Chinese radical that means 'foot'. The meanings of those characters that contain this radical are related to 'foot' in a certain way.
The phonetic component indicates at least part of
sound. Characters that contain
same phonetic component tend to have similar sounds.
For example, for
character ' 跳' ( jump ),
right part ' 兆' indicates
sound. They share
same vowel.
Phonetic Loans
The phonetic loan is another way of using existing characters. It is an internal borrowing on
basis of pronunciation: a character is used in a new meaning which is expressed by a similar sound in
spoken form. In this way an existing character has acquired a new meaning, but no new character is created.
For example,
character自in
Oracle-Bone Inscriptions was originally pictograph and referred to
nose, but it is now used in
sense of "self" as a result of phonetic loan. The character 来 in
Oracle-Bone Inscriptions was also a pictograph, referring to
wheat, but is now used in
sense of "come" as a phonetic loan.

Rosie From Learn Chinese Language Online (http://www.learn-chinese-language-online.com)
The goal of Learn Chinese Language Online (LCLO) is to reduce the Mandarin Learning curve, promote and introduce the most efficient way to grasp the broad foundation of Chinese language.