Abstract: Since 1978, while the state-owned enterprises have made a series of achievements, Chinas industrial structure tends to be advanced and rationalized. To explore the relationship between state-owned enterprisesandindustrial structure, China Economist conducted a questionnaire survey from the dimension of state-owned enterprises status, reform of state-owned enterprises and international trade in August 2018. Survey reveals that: Firstly state-owned enterprises and private enterprises have equal status in the process of industrial upgrading. Secondly, in the process of promoting industrial upgrading, the state-owned enterprises have several problems such as insufficient independent innovation, lack of the entrepreneurial spirit, and over capacity caused by promotion tournament and the objection of vested interest groups. Thirdly, compared to property right reform, the competition reforming is more conducive for state-owned enterprises to promote industrial upgrading. And full privatization of state-owned enterprises is not necessarily the most effective way to stimulate their innovation capabilities. Finally, merger and acquisition of foreign enterprises is the most effective way for state-owned enterprises to promote industrial upgrading.

Key words: state-owned enterprises, industrial upgrading, status and problems, state-owned enterprise reform, foreign direct investment