This study investigates the mismatch between the educational attainment of a graduate with a Master of Engineering (MEng) degree and the industry needs in China. A competency list for MEng graduates from the perspective of industry needs was constructed. And a survey was conducted among MEng graduate students, alumni, and employers to assess the listed items. The analysis of the survey data yielded five competencies. Mismatches were found for all five factors. Each discrepancy is discussed in detail in this paper.