The Impact Of Foreign Capital Merger And Acquisition On China's Industry Security And Its Legal Suggestions

Under the background of rapid development of the cross-border Merger and Acquisition (M&A), the development of foreign capital's M&A of our country is also very rapid. The foreign capital's M&A accelerates the development of our economic, and it also causes serious industry security. Though the law named "Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors" which is caused by the XCMG-Carlyle acquisition case is formulated, the problems of industry security for foreign capital's M&A are not solved thoroughly, and the legal system of industry security should be adjusted and perfected.Based on the law named "Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors", combining the foreign legal experience and the legal situation of our country, the framework of our industry security legal system for foreign capital's M&A is built from the basic theory of foreign capital's M&A and industry security.This article briefly introduces the background and purpose of this paper; gives the conception of the industry security review of foreign capital's M&A from the basic conceptions of foreign capital's M&A and industry security. It also states that the industry security review system conforms with the basic state policy of opening to the outside world; introduces the industry security legal systems for foreign capital's M&A in Canada, America and Japan. And it also generalizes their experiences to guide the setup of our industry security law for the foreign capital's M&A; elaborates the negative effect of the foreign capital's M&A to our industry security from the three angles of industry organization security, industry structure security and industry technology security; points out the problems of our industry security legal system for foreign capital's M&A from two levels of legal system and detailed regulations. Legal suggestions are proposed to build the industry security law system for foreign capital's M&A from the angles of legal system choice and the perfection of entity regulations, program regulations and matching regulations.