Ethiopia has declared its second state of emergency in two years amid widespread protests that have persisted since the end of 2015. Ethiopia is at a crossroad，facing challenges from both the ongoing economic transformation and the ruling party EPRDF's transition. With the tag of “ethnic conflict”，social conflicts，economist interest competition and anti-government sentiment are intertwined. The root of Ethiopian conflict lies in the inequitable distribution of political and economic resources，which is common for all transition countries. But the fact that the Ethiopian regime is dominated by the Tigray minority will add risk to the country's stability. Looking ahead to 2018，EPRDF will still have the capacity to stabilize the country despite of its weakening power. The industrialization and economic transformation will continue as well.