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This paper reviews the problem of State-owned Enterprise of China in view points of Economic History. This is classified into two stages from the development of reformation of State-owned Enterprise of China, analyzing problems and results of State-owned Enterprise of China and provided some proposals for future development. So, this paper is to explore the problems of State-owned Enterprise of China. Although China has taken a series of reformation, China is still in the bad situation where State-owned Enterprise is facing with deficits. In this article, the reformation of State-owned Enterprise of China can be classified into two steps. The first stage(1978-1993) focused to recognize and increase private enterprises while China government keeps State-owned Enterprise. The second stage(1993 - up to now) focused the structure change of State-owned Enterprise. China is affected to complete second stage reformation through introducing limited liability company system. But the company identity and government function may conflict each other. Thus, the harmonization of both parties through property reformation is essential and fundamental establishment of capitalistic corporation system will be the key of completion of China Socialist Market Economy.
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