Research On The Multinational M&A Of The Foreign Investment In Chinese Automobile Industry

With the economic globalization, the international capital flow has its new trend and multinational merger and acquisition has also become the main method of direct investment. The automobile industry around the world, since 1964, has continued to be incorporated and reunited, especially since 1990's, automobile industry has experienced several reunites.Since reform and opening, China's automobile industry has strengthened the cooperation with abroad business. In recent years, because of the lagging of the world automobile industry and the overproduction, international giant companies focus on China which has large market and fast economical development. The trend of the multinational M&A of the foreign investment becomes obvious day after day. The reason why those giant companies choose China's automobile industry is that, on one hand, we have abundant production factor supply with high quality and large automobile market demand, they can find excellent environment and favorable policy; On another hand, they can occupy Chinese automobile market rapidly, purchase the low-price assets and get the advantage from contest.The multinational M&A of the foreign investment brings us not only advantages, but also impact to our automobile industry. Besides that, during the process of M&A of the foreign investment, those abroad businesses always overcome all types of policy barriers through many legal methods. Generally speaking, the foreign investment have A stock market's agreements to purchase mainly in the mode of transnational merger of the automobile industry of our country, orientation issues additional B-share, hold listed company of co-partnership company, joint-venture to merges, merges etc.