Perspective Cross-border Mergers And Acquisitions Of Chinese Enterprises: The Status Quo, Motivation Analysis, And Competitive Advantage

After China's entry to the WTO, the cross-border mergers and acquisitions (M&As) of Chinese enterprises have increased dramatically all over the world and formed a tide. This has happened in the context of the underdevelopment of domestic M&As and the low level of internationalization. Moreover, most of the cross-border M&As'targets are firms in developed countries, such as America, Europe, Japan and South Korea. Why Chinese enterprises go abroad and undertake M&As in developed countries? Are there any competitive advantages for Chinese enterprises when they do such deals?The paper first introduces the concept of cross-border M&A as a mode of FDI and discusses its importance for Chinese enterprises. Then the paper makes a comprehensive analysis on the current state of Chinese enterprises'cross-border M&As, based on the research of 73 typical cases. In Chapter Three, the paper uses western theories to explain the motives of Chinese enterprises'cross-border M&As and points out theirs limits. Then, the paper introduces"Smiling Curve"in view of Chinese enterprises'features. Chapter Four constructs a model for the competitive advantages of Chinese enterprises. At last, the paper puts forward some suggestions on how to promote Chinese enterprises to invest abroad by M&A.