A Study For Antimonopoly Regulation In Foreign Capital M&A

Since the late 1980s, foreign capital M&A has gradually substituted Greenfield investment and become the most important part of foreign investment. However, foreign capital M&A has its advantages and disadvantages. On one hand, foreign capital M&A provides fund, advanced technology and rich management experience for the development of host country, on the other hand, it may bring adverse effect to the effective market competition. Some foreign enterprises raise market concentration and strengthen market dominancy through M&A (especially horizontal merger), in this way, the market competition is impaired and monopoly forms. Therefore many host countries regulate foreign capital M&A through laws and policies such as antitrust law, foreign investment law, state security law and so on.This paper, mainly from the aspect of antimonopoly law, discusses China's regulation of foreign capital M&A. Through the analysis of merger control regulation in EU and the USA, the author tries to induce legislative advices to the antimonopoly law in foreign capital M&A.There are 5 chapters. The 1st chapter introduces the definition of merger in antitrust law and the research scope of this paper. The 2nd chapter introduces merger control regulations in china, EU, and the U.S.A., and summerizes the deficiencies in China's antimonopoly supervision to foreign capital M&A. Moreover, the author brings some brief advices to improve the antitrust supervision to foreign capital M&A. The 3rd and 4th chapters are the key points of this paper. From the aspects of substantive law and procedural law in regulating foreign capital M&A, the author analyzes the relative advanced statute law and case law in EU and the USA, and points out the disadvantages in China's rules regulating foreign capital M&A. In combination with < Provisions on the Takeover of Domestic Enterprises by Foreign Investors > and (draft),the author gives legislative suggestions in China's future Antitrust Law. The 5th chapter introduces the authorities to execute foreign capital M&A antitrust law, as it is a hot topic in the draft of China's antitrust law.Although there are rules regulating the antitrust supervision of foreign capital M&A, they are far from enough. As the quantity of foreign capital M&A becomes larger and larger, and the scale becomes wider and wider, foreign capital M&A is more likely to threaten the effective market competition in China. It is extremely urgent to constitute antitrust law and relative detailed implementation rules to regulate foreign capital M&A. The author hopes that through the research of the antitrust supervision of foreign capital M&A, a humble effort could be contributed to consummate China's antitrust legal system of foreign capital M&A.