Theoretic And Strategic Analysis On Cross-border Mergers And Acquisitions Of The Chinese Enterprises

With the development of globalization, the Fifth Cross-border Mergers & Acquisitions(M&A) trend rose globally earlier inl990s. And, one of the most remarkable trends of the global market is the greater and greater development of cross-border M&A, which is changing the global economic situation in a faster and faster way. China, As one of the fastest-growing economy units worldwide, the Chinese enterprises participated in this trend actively. Some enterprises have succeed in cross-border M&A transactions. But generally speaking, the Chinese enterprises could not compared with the enterprises of the developed countries in scale and experience. Therefore, it is highly worthwhile to make research on cross-border M&A for enterprises in China in order to direct the cross-border M&A transaction by revealing the regulation and strategy choice. This paper focuses on Chinese enterprises, makes a review of the development of cross-border M&A implemented by the Chinese enterprises on the basis of the introduction of the theories of cross-border M&A. Then the paper analyzes the advantage and the motivation of the Chinese enterprises' cross-border M&A—to explore the comprehensive advantages of proprietary rights, internalization and locations which is based on the structure of the Eclectic Theory of International Production., analyzes the advantage of the Chinese enterprises in cross-border M&A, makes the tactic research of the Chinese enterprises' cross-border M&A, and puts forward the strategy according to the problems.In the present situation, the advantage of the cross-border M&A of the Chinese enterprises is obvious. On the one hand, it is due to the loose international commerce environment, on the other hand, it is determined by the remarkable improvement of international competitive power of the Chinese enterprises, the enhancement of China's overall economic potentiality and policy support provided by the government. Although the motivation of cross-border M&A is varied, the positive support provided by the government is essential on the position and industry choice. On the position choice, we should focus on the Asia countries which have cooperative tradition with us, develop the new investment market, attempt to invest in the developed countries such as America, Europe and Japan. On the industry choice, we should focus on the resources exploiting industry and manufacturing industry which has competitive advantage. This article also points out that we should make improvement in following aspects in order to implement cross-borderM&A effectively and successfully, to consummate the law system of cross-border M&A, to master and comply with the international competition rules, to broaden the financing channel, to consummate the FDI examination and approval system, to strengthen the information system and information network construction, to train the transnational management talent.