Abstract: Based on the domain view paradigm, this paper observes and explains the key role of state-owned enterprises in understanding China's economic system and her economic situation. The institutional premise of China's state-owned enterprises is that socialism with Chinese features is an economic form with unique regional characteristics, and state-owned enterprises are a special regional enterprise group in the socialist market economy with Chinese characteristics-an enterprise type with unique characteristics. In economic analysis, profit maximization can be used as an indicator of the requirements of enterprise efficiency and international competitiveness, but in the organizational behavior of state-owned enterprises, there is no systematic institutional requirement nor arrangement of private interest objectives supported by the nature of property rights. It is considered that although state-owned enterprises are special ones, they are still profit-making organizations, which is the substantive feature of socialist market economy different from planned economy. The leadership of the Communist Party of China over state-owned enterprises is one of the most prominent structural institutional characteristics of socialism with Chinese features. It is logical in theoretical and institutional logic, but it should be highly creative and adaptable in practice. It is also a unique subject of China's original regional view with no similar precedents or experience in the world. It is proposed that state-owned enterprises should not only carry forward the fine tradition formed for a long time, but also explore and form new mechanisms and rules effectively in line with the world economy, and establish a management system suitable for their development, including the mechanism rules of state-owned enterprises led by the Communist Party of China. The connection and compatibility between the state-owned enterprises and market rules, especially with the world market rules, is not only the compatibility of different forms of human civilization, but also the compatibility and coordination between state-owned enterprises and the rules of the world market economy under the condition of co-existence of multiple forms of civilizations, as well as the action practice and ideal realization in sense of diverse human life community.