The Impact Of Foreign Merger & Acquisition On Economic Security Of China And The Countermeasures For The Chinese Government

In recent years, along with the expansion of foreign direct investment worldwide, transnational (cross-border) merger and acquisition (M & A), a major way of foreign direct investment, has attracted more and more attention from governments, and accordingly, the risks resulted from foreign M & A on China's economy has aroused greater concern from persons of vision. What risks will the foreign M & A bring about on the national economic security of China? To what extent will the foreign M & A have impact on? In this thesis, the author in view of the current economic development of China gives a detailed exposition on this very issue and furthermore makes theoretical and empirical analysis of the impact caused by the foreign M & A in China.This thesis consists of three parts divided into five chapters.Part One is the prelude (Chapter 1), in which the author puts stress on the exposition of the background and significance of the research of this thesis, pointing out that national economic security must be based on long term national interests, and that the government should not only create good economic environment for foreign M & A, but also guide the transnational corporations to optimize their investment structure in China so that the foreign M & A can effectively promote the sustainable economic development of China.Part Two is the specific analysis (Chapter 2 to Chapter 4). Firstly, on the basis of exposition of the basic theory of foreign M & A, the author defines such key concepts as foreign M & A as well as national economic security, and then puts forward the essential theoretical framework under which the foreign M & A shall have impact on national security; Secondly, the author points out that the national economic security basically consists of three parts: security of national economic system, security of national industry and security of national finance. Therefore, the author in view of the economic system, the industry and the finance elaborates the risks and impact on national economic security brought about by foreign M & A in China in order to make further empirical analysis.1) Foreign M & A will have impact on China's economic system, and eventually will give rise to the change in economic system;2) Foreign M & A will increase domestic market concentration, thus resulting in the risk of market monopoly, and on serious occasions it will obstruct the industrial development and decrease the industrial competitive edge of China.3) Foreign M & A will have impact on the stability of financial market of China, and furthermore may result in balance of payments crisis and financial crisis. In view of the current development situation of the foreign M & A in China, the author tries to make appropriate judgment and ventures to put forward certain countermeasures for the government to make active, reasonable and effective utilization of the foreign investment so as to promote foreign investment through M & A to better serve the long term sustainable economic development of China.Part Three is the conclusion (Chapter 5). The author concludes that the Chinese government should pay particular attention to the phenomena of foreign M & A in China, although it has not constituted a substantive threat. The government, on the basis of adhering to expanding the reform and opening up to outside world, must adopt appropriate governess, regulations and protective policies to guide and administer the foreign M & A so as to prevent it from causing risks on economic security of China.