Study Of Cross-border Mergers And Acquisitions Of National Security Censorship Laws

With the development of economic globalization, cross-border M&A has become one of the most important forms of international investment flow recently and has impacted the political and economic circumstances of a wide-range of countries all around the world. Following the issuance of several policies pertaining to the expansion of opening and incentive of foreign investment attraction in the recent years, more and more cross-border capitals has operated actively in China domestic capital market. Furthermore, in order to archive the maximum benefits from the transaction, foreign investors constantly adjust their M&A strategy and target at our large state enterprises in critical industries and infrastructure departments. Although the capitals and technologies brought by the cross-border companies will make certain positively influences in China's domestic market, the adverse aspect of the cross-border M&A should not be ignored. After entering into Chinese market, the cross-border companies with their large amount of capitals, advanced management system and technologies, may not only challenge the domestic small-and-middle enterprises, but also impact our existed industry structure. The thesis mainly includes the following five sections:The foreword briefly introduces the trends of global cross-border M&A in the current world and the actual circumstances of cross-border M&A in China, as well as the issue of national security related to cross-border M&A. The foreword raises the question that how to protect national security from impairment during a cross-border M&A transaction process.The first chapter is the foundation of the whole thesis, it presents the conceptions related to cross-border M&A and national security, while compares the achievements of researches acquired by several scholars in the past and specifies the relationship between the cross-border M&A and national security issue. In addition, the chapter also clarifies the importance of the establishment of national security system by analyzing the classical case in the area or cross-border M&A as well as the two-sided effects on a country's politics and economics caused by cross-border M&A.The second chapter adopts comparative analysis method, comparing the two typical models of national security system which is separately represented by Japan and the United State of America. Besides, the second chapter specifically address the investigation authorities, objectives, standard, procedures and other aspects of national security systems of the two countries, specifies their advantages and defects respectively and concludes that we can consider to establish our national security rules in respect of cross-border M&A based on the experiences of the Japan and U.S. Legislation.The third chapter outlines the current legislative circumstances of cross-border M&A and foreign control, indicate the insufficiency of our legislation and the deficiency of national security system. The author also emphasize the significance of improving legislation and establishing the national security system in China.The forth and last chapter refers to the national security system under the American model and provides some special suggestions for improving the related legislation of national security system, within the designs of both substantial and procedural regulations. The chapter also specifies the response to the questions that whether or not we shall adopt national security regulations in cross-border M&A transaction and how to establish the national security system according to our specific conditions.