Analysis Of M&A Investment From EU To China

At the turn of the centuries, cross-border M&A has become the major way of FDI. EU enterprises have played an important role in this global M&A wave. As for China, the traditional ways to attract FDI still works essentially which leads to the small size and low quality of EU investing in China. Therefore it is meaningful to analyze EU's cross-border M&A investment and use cross-border M&A to improve EU's investment in China.Comparing the high tide of EU's M&A investment with the state of EU's FDI in China, this paper tries to find a new idea for China of attracting EU's direct investment. The whole paper consists of 4 chapters. Beginning with a review on the history of EU's cross-border M&A, the first chapter presents the features of its M&A investment. In this chapter, the reasons why recently EU are so active in this M&A wave and the effects that such activities of EU enterprises will take on the integration of EU are underlined. The second chapter lists relative statistics to analyze the features that EU enterprises invest in China through FDI at present and points out problems existing in the process of China drawing EU's FDI. The third chapter attempts to show that EU's M&A investment in China is a win-win game. Three typical cases from 1990s up to now deepen this conclusion. The last part gives out the feasibility of China attracting EU's M&A investment. At the same time the paper makes several pieces of suggestion to incentive EU's investment as well as to improve China's environment of attracting FDI. Of course, we recognize that it is unavoidable that EU's M&A investment will bring about side effect to China's economy. The government should take actions to reduce its damage to national benefits. Based on the above analysis, the coreconclusion is drawn that EU's M&A investment in China is a new way to attract EU's direct investment.