Impact Of FDI's Merge And Acquisition On China's Agricultural Development

In recent year, FDI's Merge and Acquisition (M&A) on pillar force enterprises has attracted the attention from government, economics circle and business circle. The thesis first summarizes characteristics of agricultural foreign capital according to different sources and area. FDI has already become the main stream of agricultural foreign capital. It's main method is M&A. M&A focuses on soybean industry and agri-food process industry. Every coin has two sides. FDI entering Chinese agriculture has played important role on agri-development. It brings funds to offset the less input, at same time introduces foreign advantage techniques and equipments, fine seeds and new management experience. FDI also promotes industry upgrading and local development. On the other side, we can not ignore negative effect from the instinct of capital's chasing profit, For example, crowding out effect to employment and small & medium enterprises, obstructing technique progress and independent innovation, threatening to sustainable development of agriculture and increasing risk of agri-products'self-supplying. This exposes the latent problem of using foreign capital in agriculture. On the basis of analysis of M&A's risk and bad influence to China's agriculture, the thesis gives the policy suggestions for government decision. The thesis is composed by five sectors, 1. The summarization of using foreign capital in agriculture. 2. The changing of FDI's investment tactic. 3. The analysis of Foreign M&A's benefit to China's agriculture and rural area. 4. Foreign M&A's challenge to China's agriculture. 5. Policy suggestion to Foreign M&A in agriculture.