Multinational Companies In China M & A Activity Analysis

With the increasing globalization of Chinese economy, especially since China's accession to the WTO, China has become more open in its policies related to investment, market access and national treatment, which leads to many more multinational corporations entering into the Chinese market by the way of merger and acquisition. As a result, transnational merger and acquisition may take a leading position, replacing the currently prevailing mode of joint venture and cooperative foreign direct investment. In response to such situation, it is necessary to analyze and research on the merger and acquisition activities of multinational corporations in China. This dissertation consists of five parts: the first part summarizes the evolving history, approaches, characteristics and trends of merger and acquisition by multinational corporations in China; the second part analyzes the merger and acquisition by multinational corporations in China based on foreign direct investment theory; the third part carries out a comprehensive analysis on the merger and acquisition activities of multinational corporations in China from five perspectives (the global strategy of multinational corporations, orientation of merger and acquisition, exterior settings of multinational corporations, pros and cons of merger and acquisition against new establishment, and inherent requirements for merger and acquisition of both parties involved) based on corporation strategy theory; the fourth part elaborates on the impacts on the Chinese economy of merger and acquisition by multinational corporation of Chinese enterprises; on the basis of the foregoing analysis, sets out the conclusion of this dissertation and brings forward the writer's suggestions. In summary, MNC's activities of merger and acquisition in China are the result of many factors. These factors reflect the MNC's strategy, the internal and external conditions in China. The importance of China's market and resource is the direct reason of MNC's merger and acquisition in China. Under the current condition of risks, merger and acquisition are a better alternative for MNC's investment in China. In the mean time, MNC's activities of merger and acquisition in China have two-fold effects on China's economy, with which we must deal properly.