Analysis And Comparison On The Legal Regulation System Regarding Domestic M&A By Foreign Investors In China And The US

In 2014, China has surpassed the US becoming the biggest target country for domestic mergers and acquisitions by foreign investors and has maintained momentum of such growth ever since. Meanwhile, China’s legal regulation system regarding domestic M&A by foreign investors has been going through construction and completion. The US has typical representativeness in absorbing and making use of foreign investments among developed countries, it is also the first country around the globe to build legal regulation towards M&A and has so far the most complete and sophisticated relative legal system.Foreign capital M&A is a very complex economic activity and its regulation involves comprehensive range of legal issues. This paper examines the US and China’s legal regulation systems with the combination of case study method and principles of economics. The relevant experience of the US is analyzed and borrowed to offer constructive suggestions for China’s legal regulation in this respect. Basically, the paper is composed of 4 chapters.In the first chapter, the paper starts with defining the legal concepts of domestic mergers and acquisitions by foreign investors and then introduces the current situation and latest trends in this area. The concept, main features, and functions of legal regulation towards domestic mergers and acquisitions by foreign investors are illustrated after that.The second chapter is about the legal system towards domestic mergers and acquisitions by foreign investors in the US. It introduces the history and current condition of its foreign capital M&A, analyzes its main legal regulations of both federal and state level, its special laws to particular industries. The traits of the US’s foreign capital M&A are heavily analyzed and the background and cause of formation is discussed.The third chapter is the introduction of legal regulation towards domestic mergers and acquisitions by foreign investors in China. The main contents include the history of M&A in China, the actual situation and the main characters, and also analyses the legislation and deficiency.Above all, this paper compares and analyzes the US and China’s legal regulation systems regarding domestic M&A by foreign investors, and many important legal matters in connection with the M&A are utterly discussed and studied. The relevant defects and deficiencies in China are pointed out and criticized. By learning good regulations on M&A in the US, suggestions on the construction of legal system of M&A have been made, throwing a sprat to catch a herring.