China's Legislation On Foreign Capital Acquisition And Merge Analysis And Suggestions

From the 1990s, with the quick development of multinational companies, foreign investor acquisition and merge has become very popular globally. Company acquisition and merge has become a dominant form of investment in the world. This complicated market operation model can only give out its positive effects when it is put under the control of a thorough legislation system. Although after the year 2000, influenced by various macro, micro and policy factors, transnational investments was on the downward trend. But in China, the situation is better. Although the global economy is gloomy, but China's has maintained continuous growth. In the year 2003, China's inflow of foreign capital superceded UDA and became the largest country in terms of inflow of foreign capitals. Company acquisition and merge has been growing well in China and foreign capital acquisition and merge has become a very important way of introduction of foreign capital.Although foreign capital can bring us the fund, advanced technology and management principals and promote the development of our economy. But we should see that the foreign investors directly target on various industry leaders to try to win the dominant position in the marketplace. Some foreign investors even expand their targets on the companies in the supply chains to try to achieve a monopoly operation. This will be a threat to the safety of the national economy.Currently, China's legislation about acquisition and merge are dispersed into different kind of laws and legislations, and they are not thorough, nor systematic. Some even conflicts with each other. Most of them are administrative regulations with lower level of legislation and are not in a good position to control the acquisition and merge behavior. Although Temporary legislation On Company Acquisition And Merge By Foreign Investorshas stipulations on acquisition and merge principal, organization and procedures etc, but as it is only an administrative regulation, the legislative level is too low.The thesis analyses the current situation of legislation status in company acquisition and merge field, compares the USA and European Union legislations, and points out the advantages that we should learn from. Currently, the most important legislation in the field is Temporary legislation On Company Acquisition And Merge By Foreign Investors, and Anti-Monopoly Law Draft will also play more and more important role in the field. The thesis makes detailed analysis on these two legislations, especially makes amendment suggestions on the area concerning company acquisition and merge in the Anti-Monopoly Law Draft.On the basis of amendment of the specific legislations, the thesis also proposes to adjust the legislations on foreign investment field and establish a thorough legislation system on company acquisition and merge by foreign investors: 1. separate the three foreign investment laws and their detailed rules; 2. on the basis of...