In China today state-owned enterprise (SOE) is regarded as an essential tool to realise long-term development. However, the development of SOE is concerned with ineffective training systems and laggard leadership development. The reasons include the special governance structure and nature of SOE, the huge influence of Chinese culture, and a lack of attention to the necessity of training and leadership development. By inviting two representative SOEs as study objects, this research takes particular focus on the positive influences of strategic human resource development (SHRD) on training and leadership development in Chinese SOE. To investigate this claim, this research critically analyses the justification of applying SHRD to Chinese SOE, and then adapts the SHRD model to be more suitable in the context of Chinese SOE. The result of this research clearly illustrates that the effectiveness of Chinese SOE can be improved by the countermeasures of the current reform, and training and leadership development, and that the latter one can definitely be improved by the application of SHRD. The result reveals the close relationship between the improvement of training and leadership development and the application of SHRD. Therefore, SHRD plays a crucial role in the future development of Chinese SOE.