Research On Manufacturing Industrial Security Early-Warning Of China Under The Foreign Capital’s M&A

Along with our country opening to outside world, foreign investment isincreasing, so is the foreign capital merger and acquisition. foreign capital M&A hasadvantages as well as disadvantages. Although foreign capital M&A can help todevelop the economic of our country it threats to industrial security. The mainlydisadvantages of foreign capital M&A is that it can lead to the disappearing ofstate-owned capital and our national brands, reduce the innovation capability ofenterprises, lead to monopoly and do harm to fair competition. Therefore, our countryshould pay attention to foreign capital M&A and take measures to protect our industry.Based on that, this paper analysis the present situation of foreign capital M&A and itsinfluence to our industrial security, and then comes up with the warning model.This paper includes five parts. The first part introduces the backgrounds,purposes, methods of reach and so on. The second part analysis the developmentprocess, the present situation of foreign capital M&A and its influence to ourindustrial security. The third part is the focus of the paper. This part constructs theindex system and uses PCA(principal component analysis) to evaluate industrialsecurity, and then uses BP(back propagation) neural network to construct industrialsecurity warning model. The fourth part uses the industrial security warning model ofthe third part to do empirical research about China’s Manufacture of Computers andOfficeEquipments. The result shows that industry is not safe and there is yellowwarning. The fifth part comes up with measures to protect industrial security of ourcountry.