Foreign Investment In Chinese Cross-border M & A Analysis And Countermeasures

In recent years, transnational merger and acquisition has become a primary form of direct investment in the overseas market under the background of economic globalization, and is also the most important method for multinationals to implement their strategy of global expansion. China entered into WTO in 2002, since then, Chinese economy has been an undivided part of the world economy. In order to facing the competition of globalization, our government has been reducing the limitation of transnational merger and acquisition in the field of finance, telecom, energy etc, and has made a series of laws and rules. At the same time, we saw more and more affairs that happened since 2002. Many people even called the year 2002 as the first year of Chinese merger and acquisition. Now, people are paying more attention to the rapid speed of merger and acquisition, but most of them carried about the quantity of the affairs and the amount of money and ignored the problems existed. Taking the foreign capital merger into consideration, therefore, has a realistic significance to discuss the way in which Chinese enterprise can adopt suitable countermeasures to scramble for benefits and avoid risks and Chinese government can make suitable laws and rules to use foreign investment.As a method of using foreign capital, merger and acquisition exists many problems at present. foreign brands competed with Chinese brands with their advantages; local government broke many laws to attract foreign investment, we did not reach the expected goals by getting technology through giving up the market…It is necessary to point out that taking these problems into consideration, our intention is not to disagree to attract foreign capital by M&A but to attract foreign capital better than before. After all, double win is the result that both sides want. It is undisputed that we need to attract foreign capital gradually to stimulate Chinese economy, at the same time; we must notice the quality of the capital and adopt a necessary measure to reduce the bad effect of the transnational merger and acquisition. The thesis comes from analyzing the present situation of transnational merger and acquisition to get the trend of developing and to point out and explain the present problems and get some solutions to solve these problems.The thesis contains three chapters. Chapter one is introduction, including basic concepts, the importance of transnational merger and acquisition and the necessity of the research. This part will offer you a easier way to apprehend the later parts. Chapter two will analyses the present situation of transnational merger and acquisition, sum up the calling features and the developing trend, include the main method of the cases, contrast each method, and induce the key problems and their bad effects. In additional to all these, there will be a positive analysis on transnational merger and acquisition. Through analyzing an old multinational corporation – FAG (a Germany bearings maker) get the strategy of foreign companies. The last chapter analysis reasons of all existing problems and concludes that Chinese companies and the government have to pay attention to some matters during their participations in transnational merger and acquisition.