On The Supervision Of Anti-monopoly Law Enforcement In Foreign Capital Merger&Acquisition

Foreign capital M&A is playing an important role in global economy,as a way of investing abroad for foreign companies. As the Chinese market-oriented economy develops and the reform and opening after entering the WTO accelerates,foreign capital M&A becomes one of the major foreign direct investments, especially as a series of large M&As in recent years has aroused extensive attention from all sectors of the society. As a two-edged sword,foreign capital M&A brings capital, technology and experience which has positive effects on the Chinese economy; but at the same time,it also has negative effects,of which monopoly is the most serious. As a result of the public pressure, the anti-monopoly law which safeguards economic democracy and economic freedom,has finally been promulgated, and will be put in force from 30th Aug,2008. It is a meaningful guidance for the regulation of foreign capital M&A.The effectiveness of the anti-monopoly law is the linchpin upon which foreign capital M&A be well regulated. The anti-monopoly law enforcement organ has a lot of discretionary power over the regulation of foreign capital M&A. It has very strong enforcement power, however, power without supervision and restriction will inevitably lead to arbitrariness and abuse. Furthermore, because the anti-monopoly law enforcement organ lacks law enforcement experience, and is also under the pressure of negative public opinion which is fearful and resistant to foreign capital M&A, would inevitably create a strict investigation and resistance attitude to foreign capital M&A.Considering the particularity of foreign capital M&A and the nature of anti-monopoly law enforcement, this paper considers anti-monopoly law enforcement supervision, through the establishment and improvement of the anti-monopoly law enforcement supervision mechanism in foreign capital M&A, intensified supervision, improving the monitoring results, to ensure anti-monopoly law enforcement in foreign capital M&A and to promote China's economic development and the integration process of globalization. There are four Parts in this paper besides the introduction and conclusion.The first part introduces the enforcement of anti-monopoly law, the supervision of anti-monopoly law enforcement, and the definition as well as the features of anti-monopoly law enforcement supervision in foreign capital M&A. It also discusses the necessity of anti-monopoly law enforcement supervision in foreign capital M&A.The second part introduces the internal and external supervision holders, content, and role and realization of the procedural norms of the anti-monopoly law enforcement supervision in foreign capital M&A.The third part compares the European Union and America's anti-monopoly law enforcement supervision regrding M&A, in order to find out reference points to China.The fourth part proposes a series of improvement suggestions by analyzing the current main problems in the supervision of anti-monopoly law enforcement in foreign capital M&A in China, as well as absorbing the European Union and America's experience in anti-monopoly law enforcement supervision in M&A.Based on the discourse above, with a view to arousing people's attention to the supervision of anti-monopoly law enforcement in foreign capital M&A, and by strengthening supervision to promote the enforcement of anti-monopoly law, this paper argues to ensure the healthy development of foreign capital M&A.