Chinese local undergraduate universities are in a process of transition into universities of applied sciences. Important aspects of this include strengthening cooperation between universities and industry, cultivating applied talent needed in industry, improving students' employment rates, and promoting economic development. Internships are an important way to help students gain practical experience and deepen university-industry cooperation. The purpose of this paper is to analyze the challenges of the existing internship process in an undergraduate university in China and give suggestions to improve internship quality. Qualitative data from 35 students and 12 administrators/faculty were collected at a local undergraduate university, H University (HU), in central China, which is currently undergoing the process of becoming a university of applied sciences. The findings of the study show issues with the university's model, including communication between industry and university, internship evaluation, student guidance, and internship quality. Recommendations based on the literature are provided.