A central inspection group investigated China FAW Group, finding that this old SOE has lost its competitive strength to a great degree. ANBOUND research team believes that the group will face two challenges. The first is the challenge of reform, including eliminating corruption and strengthening management. The second is dealing with competition in the market. Chinese automobile market has entered a plateau period and its competition is increasingly fierce. It is no exaggeration to say that the Group faces a serious systematic reorganization.