Foreign Capital’s Impact On China’s National Brand Development And Countermeasures

Under the background of globalization, the "GreenField Investment" andCross-border M&A are two important ways of international investment. With the twoways compared," GreenField Investment" requires a lot of preparation work, and longcapital recovery period, relatively speaking, more and more popular internationalcompanies are attracted by transnational M&A, which can be used as means toimplement its global expansion strategy. Since the accession to the WTO, China began tofully connect with the rest of the world economy. But foreign capital merger wave hasbeen arousing people’s focus on foreign M&A. When people show satisfaction for theadvantage of foreign capital’s inflow, the gradual erosion of national brand has drawn theattention of scholars and consumers.This paper describes Chinese national brand’s situation under the trends of foreigncapital M&A，and stresses the loss of our national brand. In this paper, foreign capitalmerger and acquisition is analyzed on the basis of the influence of the development ofnational brands in China, including that foreign mergers and acquisitions may lead tocompetition reduction in the industry, the severe imbalance of industrial structure, andthe erosion of our country national corporate interests.This paper，from the General to the particular, choose analysis of Danone, WaHaHaand Robust case for mergers and acquisitions. Danone Group is one of the world’s top500, which is also ranked one of the world’s most successful health food company. Thispaper analyzes the impact of Danone’s mergers and acquisitions on Chinese famousbrands. After the general analysis, WaHaHa and Robust’ different countermeasures,under the merger of Danone, are analyzed. Then this paper analyzes the causes ofWaHaHa’s success and Robust’s disappear, thus resulting that the enterprises need toleverage their strengths, with the help of effective direction of the government and publicopinion in a positive role to hold control of the joint venture.Through micro-enterprises and initiatives, this paper explains the loss of Chinesefamous brands under the wave of mergers and acquisitions in the last section, combinedwith the current development of national enterprises and brands in China, proposescountermeasures for developing our brands from the three angles, Government, enterprises and society respectively.