Study On Government Regulation Of Cross-border M&A

There have been five Cross-border M&A events since the end of 19th century, and Cross-border M&A has become the major style of international investing for transnational corporations today. As a business natural, transnational corporations achieve their business goal through Cross-border M&A. And in the meantime, Cross-border M&A has positive affections on international capitalization flow and host country's economy. However, there is still negative side opposites to the positive sides, such as: changing the original market architecture of the host country, possibilities of market monopoly and unfair competition, damaging consumer benefit, increasing unemployment rate in host country, decreasing the economic control of the host country government, as well as unbalancing the financial cash flow of the host country etc. As a result, developed countries such as America, Germany, and Japan have passed relevant laws and regulations to regulate Cross-border M&A in their country.Since China's reform and opening up, especially last century's 90th, Chinese market, because of its huge potentiality and opening up, has become more and more important to those transnational corporations. While Cross-border M&A in China by those corporations becomes so popular and so beneficial for both China and themselves, we must notice the problems that come along with it. For example, monopoly on the industry, native industry marginalizing, losing of state assets, unbalancing industry structure and regions' economy. Because of the incompletion of...