China's State-owned Enterprises (SOEs) reform has entered a difficult stage whereby it cannot further progress due to the SOEs’ enormous power and groups’ interests. Does it mean that the state-owned enterprises don’t need to reform? Absolutely not. China’s market-oriented reform needs to further strengthen its reform on SOEs. Align with China’s market openness, the international community has started to pay more attention to China’s SOEs reform. If China does not further promote its SOEs reform at this moment, it will probably face enormous challenges in the international market.