Research On The Driving Factors For Overseas M&As Of China's Equipment Manufacturing Industry

China's Equipment Manufacturing Industry(EMI)is in a critical period of industry transformation.With the help of international factors and international market space,China's Equipment Manufacturing Industry can better achieve the development of "Intelligent Manufacturing" and "High-end Manufacturing".Sinceoverseas M&As is the main way for Chinese EMI companies to expand their overseas market,clarifying the driving factors for EMI's overseas M&As has important theoretical and practical significance.Based on the existing theoretical research and informationrevealed by CVSource database,this study found the overseas M&As practice of China's EMI companies appeared the following characteristics:Large-scale M&As become the main trend of EMI's CBMAinstead of small-scale M&As;Most targets of Chinese EMI companiesarefrom the manufacturing industry,but their industry distribution are becomingmore diversifiedand the share of service sector is increasing;Most Chinese EMI companies conduct their Cross-border M&As in Europe,US and other mature markets.Japan and South Korea is their main target-country in Asia.Using Gravity Model and ISM method,this paper investigated265 cross-border M&As cases conducted by China's EMI enterprises during the period of 1996-2014 and identified the five major driving factorsof CBMA proposed by mainstream literature.The results show that seeking for nature resources or better rules and regulations are not the actual driving force of China's EMI companies;The eight driving factors of the CBMAs conducted by Chinese EMI companies can be divided into three levels,and factors from different levels can evolve through its internal evolution law.Seeking access to foreign technology or market sources is the core driving factors;Seeking rise in the status of GVC and diversification is the superficial direct factor;Enhancing production and management efficiency is middle-level indirect driving factors.By introducing the quality coefficient and conducting further qualitative analysis of the core driving factors of EMI's overseas M&As,this paper finds,seeking higher quality foreign assets cannot always increase the market power of EMI enterprises.When and only when their own Factors Output Elasticity meet certain conditions,merger with high-quality assets can increase their market power;When the condition is not met,rational decision-makers should merger with lower quality assets,and gradually enhance their Factors Output Elasticity.Based on the above research,it is highly recommended that Chinese EMI companies should evaluatetheirstrength objectively and have a clear awareness of their development stage;When conducting CBMAs,Chinese EMI companies should choose the assets wisely and obtain foreign resources which are highly complied with their development stage;The government should make good use of theirpolicy-baskets,strengthen international cooperation,and encourage the leading enterprises to mergers with advanced foreign assets.In this way,they can enhance the competiveness of China's equipment manufacturing industry.