Analysis Of China's Response To Cross-border M & A Strategy

Along with the economic globalization and taking shape of world market that came into view since 1980' s, enterprises of China have been also aware clearly of the necessity to adhere to the worldwide market economy. At the same time, Chinese enterprises were profoundly impacted by carrying out of the policy of the reform and opening-up to the outside world and China' s accession to WTO at the end of 2001. The obvious change is that green-field investment will be more and more replaced by cross-border M&A in the coming days. Now it' s very important for us to make close research in Cross-border M&A because it is main choice for international companies when they face the choice of investment.The thesis was written by the author at the end of his master courses and after he had a serious research. The thesis offers some ideas about cross-border M&A which are meaningful for Chinese enterprises. The author tries to clarify the outstanding necessity of enhancing our business law and regulations in the whole effort of promoting our enterprise' s efficiency. At least, the author points out that business policies should be assumed jointly by the government, enterprises and other social organization, although it' s not perfect, it is still better.The thesis is consists of four chapters.The first chapter is focused on the theory of cross-border M&A. In this chapter, the author clarifies the definition, types and principles of cross-border M&A and clarifies the relationship between merger and acquisition. He tries to make his readers a profile of cross-border M&A through concise introduction to the theory.The second chapter is focused on the characters of cross-border M&A. The author points out the reasons for cross-border M&A and its main characters, intention of development in the future. In recent years, on the reverse of depressed world economy, the growth rate of China economy has been kept up above 7% every year and it attracts more and more foreign companies to invest in China. Cross-border M&A is the most possible method of investment, cross-border company could enter into the aim market through the most convenient method and achieve their global strategy ASAP. At theend of this chapter, the author indicates that cross-border M&A will see great development in China.The third chapter is focused on the current situation of cross-border M&A in China. Due to lack of law and regulations concerned in M&A, such as M&A Act etc., there are many obstacles in the way of developing M&A in China. M&A has both advantages and disadvantages at same time, we must pay attention to it and avoid such bad impact. The most important thing is to change our mind and face the new world.The fourth chapter is focused on the policy of China when facing to cross-border M&A. The author clarify respectively policies concerned about government, enterprises and the social associations. For government, it should perfect all law concerned of M&A in the country and liberate the function of investment bank and curb bad effects of cross-border M&A. For enterprises, they must do the best to promote organizational efficiency, set up cross-border development strategy, or found strategy alliance. Where necessary, they also need learn something about anti-M&A. For associations, they should establish some research institute, make communication with their counterparts in other country and train talents in the major of cross-border M&A.