Foreign Capital, Research, Mergers And Acquisitions Of Chinese Enterprises

Along with the accelerating process of economic globalization, the scale of Foreign Direct Investment (FDI) inflows has been enlarging significantly in the world economy. The growth of FDI has led to rapid development of the Transnational Corporations and some changes of competition landscape in the world market. As a major part of FDI, Merger and Acquisitions (M&A) has been playing an increasingly important role in global resources allocation, competition and economic structural adjustment. Since China's reform and opening to other countries, FDI has been exerting extensive influences on the international competitiveness of Chinese industries in the intensifying competition between foreign and domestic enterprises. The inflow of foreign capital for M&A has stepped up to capitalize its competitiveness. This thesis analyzes the probability, the pattern and the channel of M&A, through the summarizes of theories of M&A, and logical analysis methods, focuses its attention in emphasizing the necessity for Chinese enterprises to utilize foreign capital of M&A in an aim to sharpen their competitive edges in the world market. The framework of the thesis is following:Chapter one: introducing main background of international M&A and development process of M&A in China.Chapter two: analyzing advantages of M&A inflows to China and putting major emphasis on present problems in utilizing M&A capital in China. Chapter three: discussing solutions to problems mentioned in Chapter two.Chapter four: drawing to the conclusion of thesis: we should actively resolve the problems faced at the current stage, cultivate the market of M&A in China and draw its support to motivate the further development of Chinese enterprises.