China's state-owned enterprises experienced a period of deficiency and the scale of state-owned enterprises is asymmetrical to their economic profit.The deviation of behavioral objective of state-owned enterprises makes the scale of state-owned enterprises more and more enlarged,which result in diseconomies of scale.Thus,"governments must be separated from enterprises" to cultivate effective competitive mechanism,to break the monopoly of some enterprises,to let current large and medium-sized enterprises be separated into many enterprises which depend on market transaction and to reduce the scale of the enterprises.