Cross-border Mergers And Acquisitions Of Chinese Enterprises

With the development of globalization and the self-strengthening of enterprises, the Fifth Cross-border Mergers & Acquisitions (M&A) Tide rose globally earlier in 1990s when the competition intensified in the market and the enterprises desired to expand. The Chinese enterprises, mainly the large-scale state-owned ones and the high-tech private ones, participated in this tide actively although they could not be compared with the enterprises of the developed countries in scale. With the gradual implementation of commitments made by China upon entry of WTO, the Cross-border M&A will grow to the principal means among all kinds of overseas investment. This paper is divided into three parts. The first part introduces the Cross-border M&A 's concept, types, ways and its developing characteristics. Then, the second part analyzes the causes of Chinese enterprises' Cross-border M&A—to explore the comprehensive advantages of proprietary rights, internalization and locations. The analysis is based on the structure of the Eclectic Theory of International Production combined with the Imbalance Theory of Investment. Finally, the last part summarizes the Cross-border M&A characteristics of Chinese enterprises, analyzes the existed problems and puts forward the countermeasures.