Research On The Economic Effect And Government Regulation Of Merger & Acquisition Of Foreign Capital In China

With the rapid development of economic globalization and freedom of investment, transnational merger and acquisition (M&A) has been one of important ways for international capital flows. In particular, with the China's entry to WTO and the need to attract foreign capital in new times, merger and acquisition of foreign capital in China becomes increasingly intense and makes some new turns and trends of development. At the same time, it makes a multiple impact on the development of our national economy and enterprises and also brings different attitudes and disputes. Under the current situation, it is indeed necessary to, through an intensive study of merger and acquisition of foreign capital in China, summarize its process of development, deduce the trend, analyze its effect, especially the disadvantageous impact on our macro and micro economy, and actively take measures, where the governmental regulations prevail, to reduce or prevent its danger to our economic safe, the impact on industrial development and damages of enterprise and individual benefits. In this paper the author, with the logic mainline of concept of transnational M&A, its theory, situation of M& A of foreign capital in China and its affirmative and negative effect and governmental regulations which may reduce the negative effect, makes full use of theories and methods, such as economics, jurisprudence, management, game theory, comparative research and case analysis, and makes an attempt to do new analysis and demonstration on the said problems.The paper, firstly, from the basic problem of transnational M & A, makes it a definite concept, collates the classification of its types, and from the angle of combination of jurisprudence and economics, defines the connotation that transnational M&A shows according to the subject, object, subjective aspect, reason and legal relation, and analyzes the outer peculiarity of modern transnational M &A in combination with its connotation and characteristics of epoch. Secondly, it summarizes main and basic theories on transnational merger and acquisition, and respectively by FDI and M&A, concludes and analyzes 20 theories of transnational merger and acquisition by the numbers, and sets forth the advantages and disadvantages of relevant theories, which may lay the theoretic foundation for the next discussion.In this paper, through study of development of merger and acquisition of foreign capital in China, the author arranges its evolution, sums up 14 regular ways of merger and acquisition of foreign capital, points out 7 M&A ways of further development and analyzes the future development trend of merger and acquisition of foreign capital in China. And it primarily analyzes the cause of formation of transnational M&A by using the game theory, which has a certain reference for the merger and acquisition of foreign capital in China.From the macro and micro economy, this paper studies the affirmative and negative effects of merger and acquisition of foreign capital in China, and from the aim of preventing negative effect, shows problems in governmental regulations which are taken by our country to transnational M &A under the analysis and reference of governmental regulations in America, Germany and Japan, and combines with the fact to put forward suggestions to establish three-dimensional examination standard in combination with policy, economy and security for the examination of foreign capital M&A and relevant grading means of examination, to improve ways of national treatment of foreign capital and to perfect the Anti-monopoly Law, etc.