On National Treatment Towards Mergers And Acquisitions By Foreign Investors

While transnational M&A has long been the worldwide mainstream of international direct investments, the development in china is slowly which was attributed to the nation's economic status as a developing country as well as to its rather negative attitude towards foreign-capital M&A. However, with the rapid economic globalization and the nation's deepening strategic adjustment of its economic structure, China has now turned to an open and active M&A policy, which will very likely result in a surge of foreign-capital M&A.Starting from the above-mentioned opinions, this paper analyzes legal issues on National Treatment towards M&A by foreign investors by utilizing comprehensive and comparative research means.Full text consists of five parts.Partâ… , Summary of National Treatment on foreign-capital M&A .This part introduces the definition and legal characteristics of National Treatment, and definition, types, evolution of foreign-capital M&A, and further discusses legal characteristics of National Treatment on foreign-capital M&A, and establishes realistic foundation for the exposition of what follows.Partâ…¡, The rules on National Treatment of foreign investment of WTO and foreign country. The rules of WTO will certainly affect the development of National Treatment in international investment. In some sense, each agreement in WTO has something to do with the investment. Without doubt, GATT,TRIMs,GATS and TRIPS agreement have direct effect on National Treatment of international investment. Forevermore, to introduce the USA and Singapore regulations.Partâ…¢, Applying National Treatment to foreign investor. There are different standards on identifying foreign investor in China. If we does not solve to this problem, has no way to solve the problem of FDI-round-trippingappearing in practice.Partâ…£, Limitations of National Treatment of Application on market access. Because applying national treatment to market access will be only weaken the jurisdiction over foreign investment but also challenge the economic sovereignty of a country. This article gives researches on the practice of national Treatment in market access, and the measures which china should take.Partâ…¤, Applying National Treatment on antitrust review system. Foreign capital's M&A can bring negative effects such as monopolization which is the worst effect. Interim Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors draws on the reporting examination procedures over international mergers and acquisitions of other countries. However, these regulations are quite too broad in coverage to give a full framework, paying little attention to apply different standards. Finally, to offer suggestions for relevant legislations in China.The purpose of this paper is to offer some suggestions of theory and practice to applying National treatment to foreign M&A.