Transformation Of Cross-border Mergers And Acquisitions And Restructuring Of Chinese Enterprises

Since the 1990's, the fifth M&A trend has began, which has been characterized by Cross-border Mergers & Acquisitions (M&A). From the beginning of this century, the global economy has declined, but the Cross-border M&A has still taken the most important role through the developing of the Foreign Direct Investment (FDI). China is an important FDI inflowing country in the world; however, the Greenland method is still the most important FDI method in China, while the M&A method has just began, which is not as the same as the international FDI trend. Therefore, in the article, we should answer two questions: the first is whether we should develop the Cross-border M&A activities in China or not; and the second is how should we develop these activities. In order to find these two answers, we have analyzed the development of Cross-border M&A activities and done some research on FDI theory and M&A theory of the Cross-border M&A activities. And then, from the view of international development trend and the western economic theory, we has demonstrated the certain trend of the development of the Cross-border M&A activities in China. According to the reality of the Cross-border M&A activities in China, we have discussed the importance which will be caused by the Cross-border M&A activities, such as prompting Chinese enterprises reforming, restructuring the economic structure and pushing the economy to develop faster. Therefore, we have demonstrated the necessity and feasibility of developing the Cross-border M&A activities in China, and have answered the first question. After determined that we should develop the Cross-border M&A activities in China, we discussed the obstacles of developing the Cross-border M&A activities, and the problem that our Chinese enterprises will face during the M&A activities. After that, we have offered some useful suggestion, which has answered the second question.The article has demonstrated the certainty, necessity and feasibility of the Cross-border M&A activities in China; the positive and negative effects of M&A activities to our enterprises and economy; the suggestions that we should do for the next step. We should establish the suitable mechanism, which is profitable to the two partners: our enterprises and the multinational companies, and prompts the reform of our enterprises, accelerates the economic development.