Transnational M&A And China's Policy-making Concerning Foreign Investment

1990s saw a new uprising of transnational mergers and acquisitions (M&A). Foreign investment by transnational M&A is of paramount importance in global foreign investment. On the contrary , foreign green-field investment is the mainstay of Chain's foreign investment. Entering a new century, what's the policy we will make for foreign investment by M&A has great influence for our country to absorb foreign investment , even on our country's social progress and economic growth. In this thesis, we study the policy we should make for foreign investment by M&A against this background.The thesis is composed of four chapters. In chapter one , our objective is to study the motives of transnational M&A . through making light of the difference between green-field investment and the investment by transnational M&A and through making a survey of precedent theory concerning transnational M&A's motives ,we bring forth the hypothesis about transnational M&A's motive of "effective use of surplus resources and internationally snatching strategic resources". In chapter two , we firstly study the character and the effect of foreign investment by M&A in China , then we make an analysis of feasibility of subsequent absorption of foreign investment by M&A . We hold that on the condition of strengthening supervision it is feasible our country continue to actively absorb foreign investment by M&A . In the third chapter , we analyze theobstacles of and its' influence for absorbing foreign investment by M&A . Analysis shows that obstacles on one hand lead to the confused cost with foreign investors, on another hand have negative effects for the activeness arid regularity of our country's absorbing of foreign investment by M&A. In chapter four , on the basis of previous analysis ,we devise for absorbing foreign investment by M&A a policy system, which include regulating stimulating subsidiary measures .