Cross-border Mergers And Acquisitions In China's Development Research

With the deepening process of world economic globalization, cross-border M&A (Merger and Acquisition) has emerged as the main approach of Foreign Direct Investment (FDI), which is the new trend in the flow of foreign capitals during recent years. However, M&A investment only accounts for a small proportion of China's total utilization of FDI, which is incongruous with the means of the international capitals' flow. Chinese enterprises must adapt to the new macro-environment, integrating Chinese economy with international economy by M&A and cooperation with the multinational companies could be an appropriate method.Based on the systematic analysis and research for the theories and motives of Cross-border M&A, this paper points out the trend and characteristics of cross-border M&A. It summarizes the motives, ways and favorable effects of Foreign Capitals' M & A, employing the means such as the comparative research and case analysis, and applying the western M&A theories, An intensive research on the current situation and characteristics of the Foreign Capitals' M&A was also carried out in this paper. First, this paper mainly explains the incentive of doing this research and its objects, ways of thinking, creative points and drawbacks. Meanwhile, it focuses on the scientific definitions of cross-board M&A. Second, with the systematic analysis and research, it brings forward the trend and characteristics of the Cross-border M&A, In the end, this paper concludes the means and favorable effects of Foreign Capitals' M&A, explores incongruence with the means of the international capitals' flow. The findings of the research indicate that Foreign Capitals' M&A should be promoted to enlarge the utilization scale of foreign capitals.