The Identification On The Motivation Of Chinese Manufacturing Cross-border Mergers And Acquisitions

Along with the globalization of economic, China’s industry of manufacturing has been realised globalization through the cross-border mergers and acquisitions, at the same time, cross-border mergers and acquisitions is the main way China’s industry of manufacturing achieve to foreign investment.Although China’s total economic aggregate is only after the United States, authorities released data showed that the current number of Chinese manufacturing companies on cross-border mergers and acquisitions is not high, and the quality of industry on mergers and acquisitions is at a low level now.Of course, we should also see that, with the rapid development of China’s economy, the amount of China’s trade surplus increased has already bring that the amount of foreign exchange reserves surged, this phenomenon has provided China’s industry of manufacturing on of cross-border M & A with assets support.This article not only briefly reviews the theory of transnational Western merger and related cross-border M & A motivation theory, but also analyzed current situation of China’s industry of manufacturing on cross-border M & A with the relevant cases and data.Based on a combination of the development course of the manufacturing on cross-border mergers and acquisitions, analysised detailedly the main problems of transnational mergers and acquisitions account on Chinese manufacturing currently.The fourth and fifth part is the focus of this paper, analisised what the internal and external factors motivation that China’s manufacturing have in cross-border mergers and acquisitions. The way analysis of external motivation is that using China’s manufacturing industry data among 1994-2012, the amount of cross-border mergers and acquisitions, the per capita GDP, foreign currency reserves and exports of macroeconomic data, drawing trend analysis diagram.From the trend of the diagram, the per capita GDP, the size of foreign exchange reserves and exports are all have a positive correlation with the amount of China’s manufacturing transnational mergers and acquisitions. Been analyzed from the enterprise factor, that is the internal motivation analysis on cross-border mergers and acquisitions of China’s manufacturing.Then combine Western motives theory of cross-border mergers and acquisitions, such as access to foreign resources, learn advanced technology, to achieve diversification, to avoid trade barriers elaborate. By analysis the case Lenovo Group’s acquisition of IBM, provides case support to internal movement cross-border mergers and acquisitions of Chinese manufacturing.Finally, the purpose of this paper is to put forward some suggestions from the government and corporate level on cross-border mergers and acquisitions of China’s manufacturing industry, combined with China’s manufacturing industry existing problems previously proposed,such as financial support, technical assistance and national business talents government.