The Inward Cross-border M&A And The Property Rights Reform Of Chinese State-Owned Enterprises

The cross-border M&A has become a main form of worldwide FDI. In view of the demand for capital, management experiences, technology and the sharing the international market, the reform of the property rights in Chinese state-owned enterprises might be combined with utilization of the inward cross-border M&A.Adopting the methods of integrating theory and case studies, comparative studies, data analysis, this thesis, basing itself upon the theory of property rights and connecting with practice, discusses utilizing inward cross-border M&A to promote the reform of property rights in the state-owned enterprises. It comprises the contents of five aspects as following: 1) Using the reasonable contents of the foreign modern theory of property rights as reference, analyze the existing problems in status quo of property rights in Chinese state-owned enterprises, and point out that reform of property rights is the key-link of reforming Chinese state-owned enterprises. 2) Analyze the international and domestic environments which now the reform of the Chinese state-owned enterprises is facing to, investigate the present situation of utilizing the inward cross-border M&A in China, and clarify some blurry ideas about the inward cross-border M&A. 3) Discourse on the main positive functions and effects of the inward cross-border M&A for the reform of property rights in the Chinese state-owned enterprises and for the Chinese economic development: it can obtain a large funds for the reform of the Chinese state-owned enterprises; it promotes the improvement of the governance structure and the innovation of the property rights system in the state-owned enterprises; the advanced technologies and management systems of TNCs can be introduced into the state-owned enterprises so as to enhance the technical and managerial level; it is beneficial for improving the Chinese industry structure; it can increase the competitive power of state-owned enterprises and enable them to enter into the international market; it helps raising the employment rate and the revenue of tax. The author deems that importing inward cross-border M&A is certainly an important approach to deepen reform of property rights in the state-owned enterprises and to promote the Chinese development of market economy. 4) Maintain that we should rationally and appropriately look on and solve some contradictions and problems appearing in the inward cross-border M&A according as laws of market economy, rules concerned in the theory of property rights, and concretely discuss three problems attracting public's attention: the differences of strategic goal of both inward cross-border M&A and state-owned enterprises for reforming property rights, and the integration of the both sides; the issue of influencing market share and the domestic celebrated brand by inward cross-border M&A; the issue of dealing with superfluous employee. 5) Review and reflect the foreign experiences and lessons concerned, confirm that Chinese utilizing the inward cross-border M&A to reform the property rights of state-owned enterprises is based on Chinese own national conditions, its orientation is right, it represents Chinese own characteristics and stratagem, and maintain that we should positively and properly advance forward the new situation of deepening reform of property rights in state-owned enterprises with further utilizing the inward cross-border M&A.Considering that China might expand the scale of importing inward cross-border M&A step by step to promote the reform of property rights in state-owned enterprises, the author proposes four suggestions: 1) This task should be integrated into the Chinese reform of market economy system as an important link, and there should be leading layout and disposing as a whole concerning this project in advance; 2) Perfecting legislation so as to provide with strong legal safeguard for inward cross-border M&A and reform of property rights in state-owned enterprises; 3) constituting or adjusting the industry policy concerning inward cross-border M&A;4) establishing and integrating the systems and mechanism of precise censor, normalization and restriction, steering and monitoring for inward cross-border M&A.