| This study investigates, based on Larsen-Freeman's framework (1991), the nature of Grammatical Competence (GC). It aims to work out a plausible working definition of GC; to find out Chinese students' strong and weak aspects of English language; and to provide suggestions for teaching grammar in China' EFL context.The investigation procedure of the study processed in two phases: the trial phase and the formal phase. A cohort of 160 subjects participated in the study. 33 sophomores in Guangdong University of Foreign Studies (GDUFS) took part in the trial experiment and finished a grammar test specially designed by the present researcher. The pilot study turned out to be reliable and valid, but some bad-designed items of the grammar test were deleted or under modifications. 127 subjects joined the formal experiment, among whom 30 were third-grade high school students, and 97 were senior in GDUFS. After they had finished the modified test, the data collected were analyzed statistically with the aid of software SPSS 10.0.The findings show that intermediate-level learners generally have an excellent command of grammatical forms and their meaning, but a low proficiency in using these forms appropriately in given context, while advanced-level learners not only have an excellent command of grammatical forms and meaning, but also show a good command of using these forms appropriately. In addition, the study finds out that the ability to use language appropriately develops positively and greatly with the development of linguistic form.These findings provide some suggestions for grammar instruction: grammatical forms or structures deserve considerate attentions, but more effortsshould be paid to attend to use the forms appropriately in context; grammatical forms should be presented at discoursal level rather than sentence level. In sum, the findings of the study will cast some light on and have great implications to Chinese EFL teaching, learning and future studies.
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