Research On Mechnism Of Foreign Capital M&A Affecting Industry Safety Of China

In 21 century, China becomes one of the countries absorbing FDI most, which is the third in the world, after America and England, while the first among developing countries. With the reform of property right system in China, M&A, one kind of FDI, becomes more popular, while the other kind is Green field Investment. Foreign investment has been attracted for a long time in China in order to stimulate economic development by Multiplier Effect. Under this background, M&A stimulates every industry development, by bringing technique, capital and management experience and other favorableness. On the other hand, there is monopolization in some industries because of strategic M&A by MNC, which depends on their capital advantage, technique advantage, management advantage and international market channel advantage. During the adjustment and upgrade of Chinese industry structure, M&A is a favorable instrument for improving industry safety level, as well as a disadvantage of affecting industry safety level. Hence research on influence mechanism of China industry safe by M&A, in order to put forward strategies of utilizing and restricting M&A, increase utilizing efficiency of foreign capital, maintain industry safe, which is theoretic and actual valuable.On base of analysis on abroad and domestic research, actuality and characters of M&A in China is researched and industry safety system model based on foreign M&A is built. Industry safety system active mechanism model is built by four dimensionalities namely industry technique safety, industry market structure safety, industry chain safety and industry control safety. According to analysis on connotation and dimensionality of industry technique, industry technique active mechanism frame by foreign capital M&A is built, and active mechanism of technology transfer and technology spillovers of host country by foreign capital M&A is researched. Advantage and disadvantage of host country technique safety by intellectual property rights strategy after foreign capital M&A is also researched. By questionnaire and statistics, action on China industry technique safety by foreign capital M&A is demonstrated by empirical analysis. According to analysis on connotation of market structure, effect model of industry market structure by foreign capital M&A is built based on Game Theory and market structure analysis theory. Active mechanism model of industry market structure by foreign capital M&A is built based on SCP paradigm. Empirical analysis is done on automobile market structure, market action and market performance after foreign capital M&A. According to analysis on connotation and character of industry chain, industry chain operation mechanism model and industry chain dimensionality model is built. Active mechanism frame of industry chain by foreign capital M&A is put forward. Industry whole effect model by foreign capital M&A is built based on Game Theory and Input-output Analysis, which is used in empirical analysis on effect of China agriculture industry chain by foreign capital M&A. Connotation of industry control is put forward and dynamic mechanism model of industry control is built. Active mechanism of host country industry control by technique strategy, equity strategy, channel strategy and brand strategy after foreign capital M&A is researched. Integrated evaluate index system and model of industry main body control is built based on extension theory and GEM, and empirical analysis is done on equip manufacture industry.Strategies such as perfecting laws of foreign capital M&A, inducting foreign capital M&A aspect, perfecting checking mechanism of foreign capital M&A and building industry safety warning mechanism are put forward combining by industry safety theory and international experience. Other strategies for maintaining industry safety are also put forward, such as cultivating dominant industry, optimizing industry structure, improving independent innovation ability, perfecting industry develop policy and inducting enterprise M&A overseas in order to prolong industry chain.