With the development of Chinese market economy and the acceleration of reform and opening after entering WTO, Cross-border Merger & Acquisition becomes more and more popular as the major foreign direct investment. As a two-edged sword, Merge and Acquisition by foreign capital produces good results, but at the same time, it brings negative effects, of which monopoly is the serious. The legal system of foreign investment is not enough to control and regulate monopoly existing in the merge and acquisition by foreign capital, especially, Antitrust Law as a heavyweight act in M&A controlling has not been issued yet. Therefore, it is urgent that China improve its legal system on the aspect of M&A by foreign investors in order to protect its economy.This article begins with comprehension of the definition of the foreign investor's merge and acquisition, than discusses the necessity of regulation on current Chinese foreign investor's merge and acquisition and the guiding principle. Based on the experience of other countries' legislation and their practice of justice, this article tries to put up some suggestions to construct and perfect our anti-monopolization laws and also tries to bring help to the anti-monopolization law which is being made for the time being, including mode selection, standard of check-up system, our own method of analysis and check-up exempts, immunity of the transnational M&A restriction, the executive agency and procedure. It emphasizes that we should set up a highly independent administration of anti-monopolization to carry out the affairs of M&A, set up a pre-declaration system and a later supervising system. Finally, it analyzes the system of legal responsibilities for the behavior of M&A by foreign investors. |