The Impact Of Foreign Capital Merger And Acquisition On China’s Industry Security In The12thfive-year Plan Period

In the12thFive-Year Plan period, China faces the challenge that to transform thestyle of economic growth, which will not be easy. The most important part of thisprocess is follows the guide of the12thFYP. Regulating the industrial structure andincreasing our core competitiveness is a goal of this plan. During2011to2015, theworld economy is begin to recover，and the amount of merger and acquisitionlaunched by foreign capital will increase to the level that before the happening offinancial crisis. The Invading of foreign capital will make impact to our autonomousdevelopment. Finding a creative way to restrict and lead the foreign capital to helpadjust our industrial structure and reduce the negative impact is the most importanttask from2011to2015.Combine with the traditional industrial security theory and based on the research ofthe12thFive-year plan, this paper expanded the intension of industrial security andconsider that the reasonable industrial structure is one of the most important part ofindustrial security. From the view of industrial ecology and base on the theory ofM&A motivation, the mechanism of capital invade is find, and then a conclusion isdraw that if the foreign capital M&A out of control, it will do the harm to theindustrial structure and exert a negative influence on industry sustainabledevelopment. Making a early warming on automobile industry in the12thFYP periodhelp to resist the invade of foreign capital.One of the suggestions on guiding foreign capital is to increase the amount ofinvestment on foreign country, and another suggestion is to refine the policy to makethem more operable, and the last one is on enhancing the competitive capability ofour private enterprises. This paper extends the concept of industrial security andprovides suggestion on using foreign capital in the12thFive-Year Plan period.