From A Taiwanese Enterprise's Perspective

After China's economic reformation, foreign investments in China have been on a steadily increase. These trends have led Chinese government to pay much attention on its economic policy. In recent years, the investment regulation and policy within the legal system has gradually come into shape and regulatory monitored under enforcement of Chinese government. As the result of the more solid and predictable regulatory framework, it has attracted more and more offshore capital inflows into China and stimulate its economic growing at the same time. Yet, a line of limit must be draw when offshore investment into China is ever increasing. Therefore, Anti-monopoly Law was established.Anti-monopoly Law was officially enforced on August 1, 2008. This enforcement has result in great impact and causes for concern for the offshore enterprises, especially when enterprise trying to form market concentration by undertaking mergers and acquisitions.China owns a promising market due to its large population and considerable resources. This gives many investors great incentive to expand its market into China. One of the most common methods is to form market concentration in order to achieve a greater control of the market. However, all the offshore investor shall take into consideration of China's unique political circumstances and take great care to avoid violating the Anti-monopoly regulation before step into the Chinese market. This thesis can be divided into four parts. The first part of my thesis will analyze the concept of enterprise concentration and effects on Taiwanese investors after the enforcement of Anti-monopoly law follow by a comparison with China's and Taiwan's legislation. Second part of my thesis will introduce the content and standard of the enterprise concentration follow by a discussion about the standard and exempt policy. How such policy will affect Taiwanese investor when they entering to China's Market. Third part of my thesis will be focusing on the examination procedure when encounter enterprise concentration and introduce enforcement agencies for the Anti-monopoly law. This portion of thesis will end with a discussion about how the procedure and enforcement agencies impact the Taiwanese investor when performing the merger and acquisition with the China's Enterprise. In conclusion, the author will attempt to make prediction regarding Chinese government's attitude toward foreign enterprise in the future when associate with Anti-monopoly law by analyzing the first foreign acquisition case of Coca-Cola and HuiYuan in China. Moreover, the author will also offer suggestion to Taiwanese investors form legal and business point of view, hopefully will alleviate some of their weariness when entering into Chinese Market.