The Effect FIMA Brings To Our Country's Economy Security

According to relevant statistics, cross-border M&A has been the main mode of direct investment of multinational companies with the development of economic globalization, adjustment of global industry structure and rapid progress made in the new technologies. The data refers to global cross-border M&A. As for our country, Foreign Investors' M&A(FIMA) does not account of 10%, which is far below that of global M&A.Taking such factors into consideration as our government's deepening understanding of FIMA after being a WTO member, the enaction and enforcement of the laws and regulations related to M&A as well as the steady and rapid economic development and huge market which is coming into being, the surge of FIMA will happen in the coming future under the multinational companies' goals of sharing the economic fruit and integrating global resources.FIMA has great advantages in boosting reform of state-owned enterprises, reducing repetitive construction, and getting social security funds and other things. But it also brings about a series of problems, such as pushing out our national companies, resulting in financial risks, and even harming national economic security, which are rooted in the monopoly resulted from the activities of FIMA. Facing the new situation, we should not be optimistic. We have not enacted antitrust law, and the regulations about M&A have all kinds of bugs with serious shortage of mixed regulations. At the same time, due to coexistence of excessive competition and administrative monopoly in our market, our national-fund companies have not formed strong global competitive capability.Therefore we should prepare for foul in fair weather. We should have a depth understanding and researching on characteristics of M&A which are reflected from the surge of M&A in the developing countries, especially Latin America and south-north Asia, the theoretical bases and development trend of antitrust laws, aside from these, we should take appropriate and effective measures under the consideration...