Foreign Technical Control And The Taking Over Of Sino-foreign Joint Ventures Through The Trap Of"Joint Venture-Lossesmerger & Acquisition"

The Chinese government liberalized foreign investment policy with the intention of "exchanging market for technology",however,according to the reality,this liberalization has not achieved the expected effect and even faced the Chinese enterprises with the risk of "joint venture-conspiratorial loss-M&A".That is,the foreign enterprises just take Chinese enterprises as springboards to enter the Chinese market,first they joint venture with Chinese enterprises and during the course of joint venture,they damage the benefit of the joint ventures deliberately and take over the joint ventures with low cost so that they can conduct the conspiracy of sole proprietorship.The "conspiratorial loss" phenomenon increased the transaction cost and learning cost of Chinese corporations,and made Chinese corporations fail to achieve what they expected.The " joint venture-M&A" transition in the Sino-foreign joint ventures not only encroached the survival space of Chinese enterprises but also endangered the host country's industry security and brought damage to the healthy and orderly development of the host country's national economy.One of the most important methods of "conspiratorial loss" is technical control.By employing technical control,the foreign enterprises on the one hand can maximize their technology blockage to the Chinese enterprises and prevent owned-knowledge spillover,thus creating the Sino-foreign joint ventures' dependence on them,and on the other hand,can exert influence on the performance and strategic decisions of the joint ventures through their decision power and usage right of the technological resources.And during this process,the joint ventures' technological innovation capacity is also greatly damaged,thus foreign enterprises can easily manipulate the joint ventures' development,resulting the Sino-foreign joint ventures being taken over.Based on above,this paper takes technical control as the breakthrough point to study the "joint venture-conspiratorial loss-M&A" phenomenon in Sino-foreign joint ventures.This paper conducted a comparative analysis between the technical innovation capacity of the Sino-foreign joint ventures under normal operation and that of the Sino-foreign joint ventures with conspiratorial loss.It is showed that the technical innovation capacity of the enterprises hostilely taken over has been weaken,while that of the enterprises not taken over maintained a relatively stable level;we also built the influencing factor models of the joint ventures' technical innovationcapacity and the "joint venture-conspiratorial loss-M&A" transition of the joint ventures,and proved that foreign enterprises may obstruct the promotion of the technological innovation capacity of the joint ventures through technical control,thereby increasing the possibility of the "joint venture-conspiratorial loss-M&A" transition,and joint ventures' technological innovation capacity played a mediating role between foreign technical control and the "joint venture-conspiratorial loss-M&A" transition;the moderating role of joint venture's R&D investment between foreign technical control and the "joint venture-conspiratorial loss-M&A" transition has not been proved;the weakening of the technological innovation capacity of the joint ventures would significantly increase the possibility of the "joint venture-conspiratorial loss-M&A" transition in joint venture's.The results of the study hold a positive guiding significance for the development of foreign investment policy and the practice of enterprises' introducing foreign investment.