Legal Regulation Of Multinational Mergers And Acquisitions Of Chinese Enterprises

It began the middle period of 1990 that multinational corporations merger and acquired Chinese enterprises. With entering WTO in 2001, Chinese market is opened further. So the mode of foreign direct investment in china is changing from the Greenfield Investment past to Merger and Acquire now. More and more multinational corporations have been merging and acquiring Chinese enterprises since 2002. It reflects the idea that enterprises improve themselves global competition in course of economic globalization. In process of merger and acquisition, people are concerned about the passive effects of that multinational corporations exploit monopoly position to plunder price, to seize monopoly profits, to eliminate workable competition, to limit technological innovation and to threaten economy safety of aimed country. The essence of multinational corporations is to obtain monopoly position and monopoly profits. They could limit competition, reduce market efficiency and cut down social welfare if they dominate the market. By the way of merger and acquisition, multinational corporations can obtain market share belonging to domestic enterprises easily, break the limitation of industry policy and market entrance secretively, monopolize in some industries and departments. If we don't regulate the actions of Cross-border M&A reasonably, multinational corporations could obtain monopoly in our important industries and occupy dominate...