On The Antimonopoly Law In China's Foreign Mergers And Acquisitions

Foreign Direct Investment has two basic methods in current fields of investment: Incorporation and M&A. Cross-border M&A (Refer to as the foreign capital M&A according to the host country' s estimates) springs up in the late 80s and has currently been the main method in the overseas investment of multinational companies. The M&A is first upsurge in china upon the effect of globally cross-border M&A.Foreign capital M&A makes the profound and extensive effect on the economic society of China: on one hand, to promote scale economy of the enterprises and strengthen the market competitiveness; on the other hand, to take on a trend to monopoly spontaneously and inevitably, which makes the possibility of the high profits and eventually injure the public interests. As a result, the developed countries regard the anti-trust as the main task to circumscribe the foreign capital M&A and as the primary principle of legislation on M&A.However, Chinese legislation on M&A is not healthy in the face of M&A like a rising wind and scudding clouds and in the face of opportunity and challenge after china' s entry into WTO. Up to present, law on anti-trust which is regarded as the core legislation to intervene the economic development is not promulgated.So, the author chooses the "Review on anti-trust system of M&A" as the essay thesis, making a coverage discussion of anti-trust control of M&A: necessity for anti-trust control of M&A, basic principle of M&A, material provision on anti-trust control of M&A and procedural provision on anti-trust control of M&A, and presenting the suggestions on how to perfect the anti-trust system of M&A for the purpose of the reference to anti-trust legislation of M&A.