On Legal System Of Foreign Acquisitions In China

While transnational M&A has long been the worldwide mainstream of FDI, Green Field Investment was always the principal mode in China's utilizing foreign capital, which was attributed to the nation's economic status as a developing country as well as to its rather negative attitude towards foreign-capital M&A. However, with the rapid economic globalization and the nation's deepening strategic adjustment of its economic structure, China has now turned to an open and active M&A policy, which will very likely result in a surge of foreign-capital mergers and acquisitions. In view of such a trend, establishing a corresponding legal system has become more and more important.This paper centers on the legal system that regulates foreign-capital M&A in China, which consists of four parts.The first part: Analysis of the conception of Foreign-capital M&A and a study of its characteristics, pros and cons.The second part: The development of China's policy and legislation towards Foreign-capital M&A as well as an insight into the reasons rooted in such a progress.The third part: An introduction to the current laws and rules that regulate Foreign-capital M&A, after which is an analysis of their limitation and drawbacks .The fourth part: Some suggestions on building the legal system so that it could effectively regulates foreign mergers and acquisitions in China. The suggestions include establishing several fundamental legal principles and adopting some realistic measures in the field of Foreign-capital M&A.