Chinese Enterprises' Overseas M & A Strategy Study

One of the major types of Chinese companies' direct investment flows in recent years are overseas merger and acquisitions(M&A), which is also one of the most important representative forms in the international development progress. With the accelerating process of global economic integration, stronger Chinese economy and larger scales of enterprises, more and more Chinese companies start to explore in the international market. Overseas M&A become the most important measure for companies to be larger and stronger and to realize international operation.Overseas M&A of Chinese companies become more intensive by the impetus of macro-economic circumstances and the inner driven force of the micro-economic entities since 1980s and arrive at a new climax especially since the beginning of 21 century. But the results or performance are not satisfied from the practice review of Chinese companies. There are not only reasons in macro-perspective view and particularity of the development of industries, but also the strategic and tactical reasons of M&A. Plenty of practice and theoretical studies have proved that there is a long way to go for Chinese companies' overseas M&A. Therefore, to examine and study overseas M&A of Chinese companies in an international perspective view is a very practical and necessary topic.Based on the research results of overseas M&A theory, competition theory, enterprise development theory and enterprise culture theory, etc, this paper starts with the analysis of the overseas M&A motivation of Chinese companies, The author analyzes the current failure reasons of the overseas M&A of Chinese companies through a study of a real case represented in TCL group and presents her view on strategic positioning, core competitiveness, Integration, corporate governance to increase the performance of overseas M&A from the perspective of the micro-economic entity-accompany. The objective of this paper is to provide some valuable theoretical foundations and suggestions for overseas M&A of Chinese companies and to give some helpful reference for the further development of Chinese companies in the global integration process.