Research On The Foreign M & A And The Country's Economic Security Review

Since the case,the Carlyle Group to buy Xugong in 2005, foreign mergers and acquisitions has been unprecedented attented,also raises an important topic on the threat of foreign acquisitions of China's economic security. What's more, another recent case—Coca-Cola to buy Huiyuan—will make this problem of the threat of China's economic security to another wave of the storm. This article is born in this context. At the present time, Our scholars study a lot separately about the foreign mergers and acquisitions and the national economic security,little study them together ,so to explore the realationship between the foreign mergers and acquisitions and the national economic security ,and then to improve national security review mechanism for the current status quo of China's foreign acquisitions, is very important.Inevitably, foreign acquisitions create a powerful impact to China's industries and enterprises, and its biggest flaw is the restriction or elimination of competition in the market, leading to a reduction of competitors on specific market, increasing the market concentration, even a small number of transnational corporations monopolizing the market, thus damaging our the competitive market structure. From the short term, it may cause a huge loss of state-owned assets; From the long term, it has the potential impaction on China's national industrial system, forming monopolizing and Foreign-funded enterprises controlling of the core technologies, then posing a threat to China's industrial security and national economic security.As a result of that ,there is a lot of loopholes and defects in our current regulatory system about foreign mergers and acquisitions, the existing review system can not fully and properly assess the impact that the M & A transactions bring to national security, may can not meet the maintenance needs of national economic security at the new situation, we can draw on the latest national security review system of U.S., improving our national security review of foreign M & A system as soon as possible. The main view is that adopting the basic law of a national security review system to guiding the relevant laws and regulations, and the systemsis and integrately establishing the foreign M & A review system, effectively regulating the foreign mergers and acquisitions.