China's Foreign M & A Regulatory Mechanism Study

Since 1920s, there has been a rapid development of Foreign Capital Merger and Acquisition (M&A) in China, which has become the main method of foreign direct investment. It has been proved that Foreign Capital M&A has had some positive effects on China's economic development. However, the negative influences can not be ignored. Foreign-Capital M&A has brought forward a new challenge to Chinese regulatory mechanism. Regulating on Foreign Capital M&A is the common practice accepted all over the world. With years'examination, the regulatory systems of developed countries are much worth learning for china. In this paper, a comparative study of regulatory mechanisms in some developed countries was made. Meanwhile, the problems existing in our county's regulatory system are analyzed. In view of China's national conditions and legislation actuality, proposals are put forward in order to perfect our regulatory system.This paper is divided into four chapters with about 35000 characters.The first chapter introduces the status quo and characteristics of Foreign Capital M&A in china. The relevant theories of Foreign Capital M&A is firstly elaborated and then follows the standpoint of this article. On this basis, the reasons for foreign takeovers of Chinese enterprises are analyzed briefly. The author believes that the reasons should consist of both macroeconomic and microeconomic factors. In light of the global situation of foreign mergers and acquisitions, there is a growing trend in China with the distinctive features in methods, subjects, targets, fields and strategies of merging and acquiring.Chapter two analyzes the necessity for regulatory mechanism, and introduces the status quo of Chinese regulatory system. The author expounds the essentiality and urgency of regulating, from the perspective of the negative effects of foreign mergers and acquisitions, the need for the state's industrial restructuring, as well as the practice of regulation on foreign mergers and acquisitions. In addition, the author describes the regulatory mechanism in our country, focusing on the industrial access control mechanism and anti-monopoly regulatory mechanisms. At last, regulatory laws and regulations on Foreign Capital M&A in our country are summarized. Chapter three describes the monitoring mechanism of foreign mergers and acquisitions of the United States, Japan, and the EU. It also introduces the unique advantages of their industry access regulatory mechanisms and anti-monopoly regulatory mechanisms respectively, from which the inspiration for our regulatory mechanism is drawn. Apart from that, this chapter paves a way for the coming chapter in which the countermeasures are put forward.Chapter four is the core of this article. Connecting with the second and third chapters, it analyzes the problems in the legislative concepts, legislative intent, as well as the implementation of related laws in current regulatory regime of Foreign Capital M&A. Finally, suggestions on how to improve the foreign access mechanism, anti-monopoly laws and other laws related to foreign investment are given.