Abstract:〗Neoliberalism and Public Economics has emerged since 1970s in 20th century. Public economic entity diversifies gradually and there is a transformation of“let markets rip” on government administrative system in the West. Private sectors, the third sectors, community, international organization all become public economic entities, even gangdom organizations provide public product to capitalist class as well. However, labor organization and public economic sectors are main bodies of public economy besides government sectors. As long as governments in the western countries are of capitalist class, economic crises are inevitable no matter how its administrative system transforms, by contrast only socialist countries can transform administration system relying on the masses to ensure state functions limited within several universal and national functions. It’s relatively important to separate government functions from enterprise management, in a systematic way putting the Stateowned Assets Supervision and Administration Commission under the administration of National People’s Congress at the same level from the government at all levels.