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.