China’s Agricultural Security Law Research In The Perspective Of Foreign-Capital M&A

Security problems of agriculture have been a hot topic, with the increasingly active foreign mergers and acquisitions in the agriculture within China, since joining the WTO. Foreign M&A activities, to some extent, contribute to China’s agricultural industry resource integration, ease the financial pressure of the agricultural industry, and also have brought advanced management philosophy as well as science and technology for the domestic enterprises concerning agricultural, impacting the modern development of China’s agricultural industry positively. But as a sword has two sides, the profit-maximizing activities of foreign M&A will pose a great threat to the safety of China’s agricultural industry. Foreign capital has quickly acquired a number of leading enterprises in the field of beverage, wine, meat processing, after entering the field of agriculture by means of horizontal merger, trying to obtain monopoly power and thus forming industrial control, and ultimately affecting the safety of China’s agricultural industry. Modern agricultural industry is composed of a plurality of longitudinally activities closely linked to the industrial chain, and foreign control of any link could have impacts on other aspects of the industry chain, thereby threatening the safety of the agricultural industry.Agriculture Security is directly related to national economy’s healthy and sustainable development. And it has also been becoming a strategic issue affecting the stability of the state. Agriculture is a weak industry, with the traits of a long production cycle, high natural risks and low return on investment, so there has always been the difficulty in attracting foreign capital in the process of industrial development. The lack of capital has been a major bottleneck restricting the rapid development of China’s agricultural industry, and also has become an inevitable challenge the development of China’s modern and efficient agriculture has to face.With the increasingly frequent foreign M&A, in order to standardize and guide the activities of foreign mergers and acquisitions of enterprises concerning agricultural in China, but also in response to the emergence of new situations and problems in the foreign M&A of enterprises concerning agricultural, China has been improving legal systems of agricultural industry safety. China not only has modified the "Foreign Investment Industrial Guidance Catalogue" several times to adjust foreign capital’s entrance of the field, but also has established a security review system for foreign mergers and acquisitions, antitrust review system, and a preliminary agricultural industry safety legal system, providing legal protection to agriculture Security. However, due to the late start and experience of China’s agricultural industry safety legislation, there are some problems in the agricultural industry safety legal system. For example, the provisions of the system are defective and incomplete, and the way to coordinate the mutual relations among the system is undefined, the system of legal is in a low level. A perfect agricultural industry safety legal system is a basic request to promote the industrialization of agriculture development, and to safeguard national economic security. It is important for China to speed up the pace of improving the agricultural industry security legal system. Allow foreign capital to play the greatest positive effect, and let foreign investors really achieve a win-win situation after entering in China’s agricultural market, in the condition that it will not threaten agricultural industry safety. Therefore, improving the legal system of China’s Agriculture Security can not be delayed.This paper is divided into six parts, to study the legal issues of foreign mergers and acquisitions in China’s agricultural industry safety. The first part introduces the innovation and difficulties of the study as well as the domestic and foreign research. The second part illustrates the related theory of foreign mergers and acquisitions in enterprises concerning agricultural, by using the theory of law and economy, such as the theory of national sovereignty, security value theory, the external effects of foreign mergers and acquisitions theory, industrial control theory, on the basis of clear concepts. The third part depicts the status quo of through examples foreign mergers and acquisitions of Chinese enterprises concerning agricultural and the legal systems of agricultural industry security by posing examples, and sums up shortcomings of the legal system of China’s agriculture security. The fourth part introduces the status quo of the legal system of agricultural industry safety in the developed countries and regions as the representatives of the United States, European Union, Japan and developing countries as the representative of India, analyses the similarities and differences in these countries’legal systems, and sums up the experience we can learn from. The fifth part totally perfects and arranges the legal systems of admittance involved in foreign mergers and acquisitions of enterprises concerning agricultural, safety review, antitrust review, intellectual property, financial, agricultural insurance, agricultural subsidies, agricultural taxes and others, through establishing the basic principles of improving the legal systems of agricultural industry security, expecting to guide the activities of foreign mergers and acquisitions of enterprises concerning agricultural properly. The sixth part mainly introduces the operation support mechanisms of legal systems of China’s agricultural safety, including farmer-enterprise interest integration mechanism, bank-insurance interact mechanism, agricultural industry security warning mechanism and monitoring mechanism of the agricultural industry run, in the hope to make sure the legal system of agricultural industry security can operate and implement effectively.