China's Foreign M & A Legal Regulation

Mergers and acquisitions by foreign investors is one of the latest central issues in the development of our economy. This is partly because of the effect of the integration of global economy and the soaring of transnational mergers and acquisitions, and partly because of the fast developing domestic market which has been more and more attractive to foreign investors, and also because of the recent government policy trends to expand foreign investment utilization on promoting the reform and restructuring of state-owned enterprises.Compared to the practices of foreign investors' mergers and acquisitions, the concerning legislations are relatively lagged behind. Therefore, it is quite important to study and analyze the legal problems of this issue. In this article I tried to make an analysis of mergers and acquisitions of domestic enterprise by foreign investors in the past ten more years, and then tried to put forward the propositions on further regulation and supervision from legal perspective. The purpose of this article is mainly focus on legal perspective instead of the material procedures, so as to supply references to the lawmakers and also to the managers and operators of domestic enterprises.This article consists of four parts. Accurately defining of the concept of foreign investors' mergers and acquisitions is the precondition of further study. Therefore, the first chapter makes expatiation on the concept, types and specific forms of this issue.In the second chapter, first I introduced the progress of foreign investors' mergers and acquisitions in our country since 1990s, and then analyzed the according effects on our economy both from positive and negative aspects.The third chapter is to analyze the legislation status of foreign investors' mergers and acquisitions in our country. After studying the causes and developing progress of legislations, an analysis on current laws and regulations has been made pointing out the deficiencies of the current legislation system, effectiveness and applicability.On the basis of the above analysis on this issue, propositions of improving legislative regulating and supervision are put forward in the fourth chapter. The first section of this chapter includes the introduction of the regulating measures taken by some advanced countries and developing countries so as to use for reference. The second section concludedfour principles of the legislation. The third section designed the legislation systems both for foreign investment holistically and further for specified foreign investors' mergers and acquisions. The last two sections expounded some measures and suggestions to improve and supplement the primary laws and also the relevant regulations and administrative rules.The legislative regulating of foreign investors' mergers and acquisitions is a complicated and systematical project and it is related to many other aspects of economic problems and legal practices. This article is only the first step in the long way to achieve a thorough study of this issue and there are still many particulars to be lucubrate in future.