A Study Of The Impact Of Cross-Border Mergers And Acquisitions On Industrial Competitiveness Of China

In the economic globalization, improving industrial competitiveness is the main objective of the economic development in all nations. In the past 30 years of reform and opening up, China's scale of foreign trade and investment has been greatly developed, and the competition in national and international market has becoming increasingly intensive. Overseas investors fasten their mergers and acquisitions (M&A) exploration remarkably in Chinese market. Meanwhile, Chinese enterprise began their M&A attempt abroad by dint of Going Globe strategy, China's industrial competitiveness has rapidly increased internationally. But overall, Chinese economy still remains at a low level, the conditions for enterprises to enhance the industrial competitiveness though M&A are still very insufficient. Therefore, this research has great theoretical and practical significance in conducting study on the cross-border M&A and its impact on industrial competitiveness.Transnational M&A is the trend of economic development. Its affect onto the competitiveness of industries in our country has become an unavoidable issue in China's economic development. This thesis attempts to find out the theory and strategy of cross-border M&A and the relativity of China's industrial competitiveness. The general idea of this study is to establish research and theoretical analysis framework, then research the impact and the consequences of China's industry competitiveness from different angles according to the framework.The chapter 1 and chapter 2 expounded on the theory of the M&A and the M&A market status in China, the theories including the meaning and the motivation of M&A, then introduce status of foreign-funded enterprises in China's M & A business and the Chinese enterprises on the overseas M & A business, chapter 3 is expounded the meaning of competitiveness, construction the competitiveness evaluation system, and analytical framework. Chapters 4 and 5, according to the "diamond model", from the factors of production, demand factors, support and related industries, as well as business organizations, strategic and market structure to review the transnational M&A's impact on industrial competitiveness.This study makes use of the qualitative and quantitative analysis methods to analyze the multinational corporations' technology spillover effects, the demand conditions and the related and support industries by regression model, verify the enterprises strategy and the state of competition by case analysis. The author holds that the foreign-funded enterprises on China's M & A had some effect for the upgrade of the industries competitiveness, but it needs certain conditions, including the enterprise's own conditions and the overall economic environment conditions, Chinese enterprises overseas M & A activity is still in its initial stage in terms of operating entity, targeting objectives and the modes for M&A.The thesis concluded that overseas M&A by Chinese enterprises has not brought about better development opportunities for Chinese industries, but this trend is irreversible.