Study On The Present Situation,Problems And Solutions In Cross-border Mergers&Acquisitions Of The Chinese Enterprises

On the background of economic globalization being faster and faster, the Fifth Cross-border Mergers&Acquisitions(M&A) Trend, which was launched mainly by transnational corporations, rose globally in early 1990s. The trend in which a large of Mergers&Acquisitions were Cross-border Mergers &Acquisitions had greater impact on the world economy. The China economy has been merged into the world economy faster and faster since China's entry into WTO in 2002. With the rapid development of China economy, many Chinese enterprises have been growing up and hoped strongly to launch cross-border managements. Strongly affected by the Fifth M&A Trend, more and more Chinese enterprises choose M&A as the way of entering into international markets. Chinese enterprises' overseas M&A are still in the starting stage,the comprehension and participation of Chinese enterprises in cross-border M&A are not enough presently, many problems in the process of M&A occurred. It is urgent, therefore, to study the M&A theories, analyze deeply the problems in the process of Chinese enterprises overseas M&A and find solutions to the problems.This paper is divided into six chapters. Chapter 1 is Introduction. Chapter 2 introduces related theories on foreign direct investment (FDI) and Cross-border M&A in order to form the basis of the following analysis. Chapter 3 describes first the history of Chinese enterprises overseas M&A, then analyze in detail the new characteristics of Chinese enterprises overseas M&A since China's entry into WTO. Chapter 4 discusses mainly the conditions on which Chinese enterprises launch overseas M&A and the motives by which Chinese enterprises launch overseas M&A on the basis of the theories introduced in Chapter 2. This chapter concludes that Chinese enterprises have enough conditions and motives to launch overseas M&A .Chapter 5 induces first the various problems occurred in the process of Chinese enterprises overseas M&A, including macro and micro problems, then try to find adequate solutions to them. Chapter 6 is Conclusion. This chapter points out that Chinese enterprises overseas M&A have a bright future, but Chinese enterprises should absorb the experiences in Cross-border M&A from the foreign enterprises, deal with the problems in overseas M&A seriously, launch overseas M&A carefully and prudently.