The Research On The Wholly-Owned Problems Of Muitinational Corporations Merger And Acquisition Of China's Enterprises

In this paper, through combine driving forces of multinational M&A (mergers and acquisitions) and China's own characteristics, draw the conclusion that the good trend of macro-economic's growth, China's unique resources as well as liberal policy environment constitute the three major factors of multinational corporation mergers and acquisitions of China's enterprises.In recent years mergers and acquisitions of transnational corporations in China have been showing some new trends. The multinational corporationes possess initiative in M&A.Their behavior exposed their strategy of control and showed a growing trend of wholly-owned, they still attempt to gain market power through a systematic of mergers and acquisitions.Through the perspective of game theory analysis shows that the trend of wholly-owned is an inevitable choice for multinational corporations. The reason why multinational corporations are often the first choice groups "owned" because they have capital, technology and management advantages, and through the joint venture, they have access to the original localization and channel networks that owned by some domestic enterprises. So, in order to curb the trend of such wholly-owned, we must strengthen the capital, technology and the level of management of domestic enterprise, pay more attention to the protection of local talents and resources, nurture safeguard the independent brands and channel networks.The wholly-owned trend of M&A in China made the strategic position of China's state-owned economic were challenged by multinational corporations, the economic security of our country have been threated too. multinational corporation have created a certain degree of market monopoly in some areas.The wholly-owned trend also caused crowding-out effect of domestic enterprises and the enterprises in related industries, the interests of domestic enterprises were harmed, some of their own brands were scathed,and such as a series of losses. Facing to the wholly-owned trend of M&A in China, we need to make preparations on micro and macro levels. From a microscopic angle, the domestic enterprises of the joint ventures with multinational companies should pay attention to protect their rights and interests, be fully aware of the necessity of the wholly-owned of multinational corporations, and they should pay more attention to improve their level of technical and management, protect their advantages in resources with great efforts. From a macroscopic angle, we need our Government to strengthen and improve the "anti-monopoly law" as the core of M&A legal system, adjust the policies about the mergers and reorganizationes between our domestic corporate, to support and encourage those merger and acquisition between domestic enterprises which have merger synergies.