In response to the “new normal” of economic slowdown, structural optimization and engine transformation, China must make major adjustments to the state-owned economy layout. Currently, the problems of the state-owned economy include a large volume with ambiguous functional positioning, excessive focus on heavy chemical industrial sectors, rapid expansion of local state-owned enterprises, failure to meet the requirements of an innovative country in terms of innovation direction and efficiency, the serious challenge of international “competitive neutrality,” insufficient effective competition in naturally monopolistic sectors, and low industrial concentration in competitive sectors. Under the “new normal,” the strategic adjustments to the layout and structure of the state-owned economy should focus on “quality” rather than “quantity.” We should stop focusing on the “quantitative goal” of the specific proportion of the state-owned economy to the national economy as a whole, and pay more attention to the “qualitative goal” of optimizing the layout of the state-owned economy and promoting the state-owned economy to better achieve its functional positioning and mission requirements. Specifically, we should promote the strategic adjustments of the state-owned economy in a classified manner based on functional positioning, adjust the industrial layout of the state-owned economy on a selective basis based on national strategic criteria and public service criteria, and promote the merger and reorganization of state-owned enterprises in a coordinated manner based on the dual objectives of comprehensively deepening reform and optimizing market structure.