Comparative Study Of Cross-border M&A Of China And Japan And The Enlightenment To China

Cross-border merger and acquisition(M&A)is one of the major method of outward foreign direct investment(OFDI). Compared to greenfield investment and other method of OFDI, cross-border M&A can save the time for building new plants, get target companies’ brands, patents and markets, expanding global market share rapidly. Since the 1990s, global cross-border M&A cases gradually increased, cross-border M&A in the status of OFDI is becoming more and more important. Since 2000, the global cross-border M&A accounted for more than 80% of the OFDI.In the 1980 s, with the development of China’s reform and opening up, a batch of qualified companies in China began to open up overseas market in the form of cross-border M&A.however, China’s cross-border M&A has been really developed since the 21st century, especially as China to increase the "going out" to the national strategic level, China’s cross-border M&A has been coming to a new stage of development.Also, compared with other developed countries, the development of Japan’s cross-border M&A started late, having the first wave of cross-border M&A until the late 1980s, and reaching its peak in 1990.With Japan’s "bubble economy" burst, Although Japan’s cross-border M&A is also experienced a gradual growth, the deals has not reached the height of 1990. Beginning in 2005, Japan’s cross-border M&A has developed rapidly.In 2012, the Japan’s cross-border M&A deals reached 485 in the year and the first time in more than 20 years to break the historical record set in the year of 1990.Over the past decade (2005-2014), both China and Japan’s cross-border M&A have experienced a significant growth, especially after the outbreak of the financial crisis, both China and Japan’s companies catch the opportunity to start to carry out cross-border M&A activities on a large scale. However, comparing the data of China and Japan’s cross-border M&A, it is can be found that though in the past two years China’s number of cross-border M&A has gradually catch up with Japan, but the cross-border M&A amount is still far less than Japan. analysing the two countries’cross-border M&A structure,it is can be found that China’s cross-border M&A both main body structure, regional structure and industry structure is too simplified and it is not conducive to the further development of China’s cross-border M&A and promote domestic industrial structure upgrade in China.The author has consulted a large number of scholars research achievements,and use data and case to evidence, analyzing the factors that caused the difference between Chian and Japan in the scale and investment structure of cross-border M&A, summarizing the problems and difficulties faced by China’s cross-border M&A.Chinese government approval process of is cross-border M&A too complex, foreign exchange control is more stringent foreign, investment preferential policies too inclined to state-owned companies, Chinese companies’cross-border M&A objectives are not clear, Chinese companies restricted by its own system and funds.This paper hope through to the comparative study of China and Japan’s cross-border M&A, finding out the defect and deficiency of cross-border M&A in China, and the worthy of reference for China in the development of Japan’s cross-border M&A, providing a reference for China to solve the above problems and difficulties, to help Chinese enterprises to carry out cross-border M&A activities better.This paper is divided into six chapters:the first chapter is the introduction part, including the research background and significance, literature review, research methods and framework, innovation points and deficiencies. The second chapter introduces related concepts and theories, will introduce the concepts of cross-border M&A, and explains the basic theory of OFDI and M&A. The third chapter describes the current situation of the development of China and Japan’s cross-border M&A, and compared the scale of cross-border M&A between China and Japan. The fourth chapter will compare China and Japan’s cross-border M&A structure, mainly from three aspects including the main body structure, regional structure and industry structure.The fifth chapter will analyze the reason why there are differences between China and Japan’s cross-border M&A, and summarizing the problems and difficulties existing in the development of China’s cross-border M&A. The sixth chapter is conclusion and revelation to China.