Reasons, Consequences and Solutions to Anti-Business Logic Behavior of State-Owned Enterprises Controllers

Focusing on the anti-business logic behavior of state-owned enterprises controllers, this paper finds that the behavior is characterized by lack of cost constraints, control of commodity prices to make it lower than market equilibrium price, stressing on scale while neglecting efficiency, etc., which causes consequences of overcapacity in some state-owned enterprises, zombie enterprises, the loss of state-owned assets, financial burdens for the state, and unequal market status for private enterprises. Finally, the paper puts forward effective solutions.