Study On Chinese Manufacturing Enterprise’Cross-border Mergers And Acquisitions

Since2000, especially China’s accession to the WTO, Chinese manufacturingenterprise’ cross-border M&A has been rapidly developed. According to the Yearbookof Chinese Enterprise acquisition, in2002Chinese manufacturing enterprise’cross-border M&A accounted for57.6%of total, and by2010the proportion has risento96.4%. Meanwhile, the number of Chinese manufacturing enterprise’ cross-borderM&A has accounted for nearly half the total. Chinese manufacturing enterprisesoccupy a decisive position in the national economy. By cross-border M&A, we canobtain more strategic resources and advanced technology from developed countries.At the same time, it is helpful to expand international market and enhance theinternational competitiveness of Chinese manufacturing enterprises on the whole.Thus it will change the overall pattern of manufacturing industry in China.Firstly, this paper analyzes two basic theories of cross-border M&A: foreign directinvestment theory and the theory of enterprise merger and acquisition, as groundworkfor subsequent study. Secondly, after a brief review of the history process aboutChinese enterprise’ cross-border M&A, this paper describes the present situation andcharacteristic of Chinese manufacturing enterprise’ cross-border M&A in detailthrough case studies and data analyses. Furthermore, it analyzes the characteristicsand existing problems about integration after Chinese manufacturing enterprise’cross-border M&A.Thirdly, this paper takes an empirical analysis on cross-border M&A performance ofChinese manufacturing enterprise through accounting index method. It uses SPSS totake a factor analysis on seventeen sample enterprises’ financial data, and gets theresult of Chinese manufacturing enterprise’ cross-border M&A performance beforeand after five years. The results show that the performance of overall sample has notimproved and there are significant differences between state-owned enterprises andnon-state-owned enterprises. Finally, on the basis of the above analysis, from thegovernment and enterprise levels to propose relevant policy recommendations topromote Chinese manufacturing enterprises cross-border M&A.