Lancy,
Few text editors currently support Unicode text entry. Perhaps the text editor you used to create the file C:/Test/Test.txt supports only ASCII characters, which are limited to 7 bits.
Remember that FileReader and FileWriter read and write 16-bit characters. However, most native file systems are based on 8-bit bytes. These streams encode the characters as they operate according to the default character-encoding scheme. You can find out the default character-encoding by using System.getProperty("file.encoding"). To specify an encoding other than the default,
you should construct an OutputStreamWriter on a FileOutputStream and specify it.
Try writing to a file with a non-default encoding scheme and then see how many bytes are written.
Ajith