Conflict And Compromise Of Extraterritorial Jurisdiction Regarding The Ruling Of Trans-border M&A

The ruling of trans-border M&A draws more and more attention because of the popularity of trans-border M&A. Conflict and Compromise of Extraterritorial Jurisdiction regarding the Ruling of Trans-border M&A becomes the focus of the public. This article tries to find an approach to avoid such conflict and provide plausible method to the legislation of China.This article comprises six parts, including the forewords, Chapter one to Four and the closing words.The forewords introduce the reason and destination of this article.Chapter one introduces the reason and consequence of the arising of conflict of extraterritorial jurisdiction regarding the ruling of trans-border M&A. Such conflict comes from the extraterritorial application of anti-trust law. The legal basis of every country is different, including the Effects Doctrine of American and the Single Economic Unit Doctrine and Implementation Doctrine of EU. M&A usually encounters extraterritorial application and conflict of extraterritorial jurisdiction, which give rise to the conflict of anti-trust law and affect the economy, politic and life of the country.Chapter two tries to find a way to harmonize the conflict from the field of domestic law. America provides a Rule of Reason Doctrine to avoid the misuse of the Effects Doctrine, emphasizing International Comity and equal interests. The Single Economic Unit Doctrine and Implementation Doctrine of EU is also to restrict the Effects Doctrine. To avoid conflict by domestic law is based on the country's intent, an unilateral comity. It is to resolve the conflict by the efforts of one single country.Chapter three tries to find a way to harmonize the conflict from international cooperation. Bilateral cooperation can be set through bilateral treaty. The practice of America and EU in bilateral cooperation is worth studying. EU introduces a law whose legal effect is higher than related specific law. Members can apply the law directly. If conflict arises between domestic law and EU law, EU law shall prevail. However, this legal framework is hard to copy because it applies in EU, a special organization. The efforts to promulgate a multilateral law never stop, but the result is not so exciting.Chapter four introduces the establishment of ex-territorial jurisdiction of China and how to perfect our laws to resolve the conflict. The Anti-trust law of China hasn't come to light yet. Related regulations are all administrative legislation, because we haven't encounter such conflict. Such conflict will sure come along with the economic development of China. The author suggests stipulating ex-territorial jurisdiction and introduces the Effects Doctrine.The closing words point out that two applicable approaches, i.e., compromise form domestic law and bilateral cooperation. Although regional cooperation and multilateral treaty is the most effective way to solve the problem, it is not plausible until now. China shall participate related bilateral cooperation actively.