Foreign Capital Merger And Acquisition Security Review System Research

Today foreign merger and acquisition is one of the major methods of foreign direct investment. While foreign merger and acquisition brings capital, technology and advanced management experience for host countries, it also causes some negative influence. Following the change and update of the safety concept, many countries begin to pay attention to the issue that foreign merger and acquisition may threaten its national security, and make or amend laws and regulations in order to restrict the transaction which may do harm to national security. In2011, the widely-expected Chinese national security review system of merger and acquisition has formally released and executed, further enhancing foreign investment legislation of China. However, owing to its shortages, the security review system needs to be improved. So the paper analyses the system constructing principle proposed by OECD and comparative studies the United States’and Russian foreign merger and acquisition security review system. After that, the paper tries to give suggestions to improve Chinese security review system. The paper comprises three chapters which can be listed as follows:The first chapter introduces the important definition and notion regarding foreign merger and acquisition review system and the four principles proposed by OECD’s Guidelines for Recipient Country Investment Policies to National Security, and discusses the system construction methods of the foreign merger and acquisition security review system.The second chapter elaborates the United States’and Russian legislation experience regarding foreign merger and acquisition security review system. The topic will include both the entity system and the procedure system and focus on their respective special contents.The third chapter analyses Chinese foreign merger and acquisition security review system which is preliminary founded. In this chapter, the paper will also discuss the issues which shall be improved and propose some improving suggestions based on other countries’experience and our country’s conditions.