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For the past several years, Chinese students abroad have become an attention of research for many scholars because of their increasing number and importance. The current study focuses on the challenges that Chinese graduate students face during their study in American universities from a literature perspective. It also is to explore the challenges that American students face in Chinese universities by interviewing them in Xi'an city, China. The study found that students face challenges in areas of academic achievement, cultural differences, social interaction, and psychological stress. The study proposes several solutions for these problems which include language training, counseling, social networking, and academic reforms. These problems are very common among the Chinese and American students. Therefore, the study appears to be of significance for stakeholders of the subject matter. To understand the current situation of intercultural interpersonal communication of American students in China, the study conducted interviews with American students through the qualitative research method.