| This paper analyses how cross-border mergers and acquisitions (M&As) affect the Chinese market structure, and what the effect is in reality.By M&As, multinational corporations (MNCs) affect host countries' economic performance through its influence on the amount of films and the market structure, thus on the competition statue and industrial growth in host countries. So the impact of M&As on the market structure and economic growth of host countries is inevitable. How the effects of M&As play depends largely on the change of host countries' market structure. Therefore, it's important to study the impact of M&As on market structure. Influenced by global M&As trend, China will face lots of M&As especially after it fulfills its opening promises when entering WTO. It is necessary for our enterprises to know about the situation of the industries they are involved in. As to the government, the industrial policy is part of the foreign policy, and the impact of foreign capital on the country's industries must also be taken into consideration. Thus it is practically meaningful to study the impact of M&As from an industrial aspect.This paper takes manufacture industry as an example, choosing twosub-industries------beer and car industries to represent two typical original marketstructures, analyzing the status quo of M&As in the industry, the market conducts of MNCs, the impact of M&As on the industry's market structure and its performance. After the analysis we draw our conclusions that, M&As force the rationalization process of manufacture industry's market structure: it forces the originally competitive industry to monopoly, and expose the administrative monopolistic industry to real market competition. However, as a result of the different objectives between MNCs and the Chinese government, M&As also bring some negative effects to our industries. So it is necessary for the government to regulate M&As for the purpose of optimizing our country's market structure. |
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