The Impact Of Foreign Capital M&A Investment On Chinese Industrial Structure

With globalization of world economy's development, it is a very notable trend recently of international industry transfer which fomented worldwide waves of cross-border merger and acquisition (M&A) conducted by multinational companies. As a result, all resources are arranged and restructured in the range of world. Ttransnational M&A has been more and more important in the two modes of Foreign Direct Investment (FDI) and become a predominant mode instead of Greenfield investment. Under the backgrounds of China's high-speed development and low labor cost, most multinational companies have turned to China. In the meantime, Chinese government wants to participate in international industrial division in the chance of global industry transfer in order to promote Chinese industrial structure adjustment and upgrading. To China Foreign capital M&A is a new economy phenomenon that has not been known enough, and necessary policies have not been made. As a result foreign capital M&A has made some passive impact on industrial structure adjustment and upgrading which induces worries in Chinese society. So how to get to know foreign capital M&A clearly is a pressing matter.This thesis firstly introduces general situation of foreign capital M&A in China, then discusses the affecting mechanism about how foreign capital M&A promotes Chinese industrial structure adjustment and upgrading, analyzes some problems existing in this course, concludes some commitment qualifications, and build a frame to explain how foreign capital M&A promote Chinese automotive industrial structure adjustment and upgrading, at last puts forward several suggestions. Different from other research about foreign capital M&A, the thesis uses theory of industry economics to explain the real situation of China from the angle of industrial structure, rather than the angle of microeconomics or macroeconomics.Through the analysis of the thesis, we can know more about foreign capital M&A in China with an objective attitude and get rid of unnecessary worries. It's meaningful for Chinese government to direct foreign capital M&A reasonably and let it exert positive impact on industrial structure adjustment and upgrading.