The Impact Of Shuanghui International Purchase On China's Imports Of USA Pork

The "going out" strategy has been more than 40 years as the national strategy since reform and opening up.The direct investment in the United States has become a typical representative since the implementation of the strategy for a long time.China occupies a pivotal position in the economic globalization.At present,the leadership system with Xi Jinping has put forward a new target and means of economic development.Facing the more intense competitive environment and the' tense resource situation,some multinational companies aiming at the foreign markets and resources.Shuanghui international completed the acquisition of Smithfield in September 2013,which paid for US $7 billion 100 million,and it is the largest acquisition by Chinese companies to the us so far.It is found that the most of scholars research this acquisition case in a financial perspective,mainly introduce the risk?motivation and performance of financial and integration.Almost no scholar has studied the impact of this acquisition case on China's import of American pork products from a macro perspective.Based on this,the article takes the Shuanghui international acquisition case as the research object,introducing the situation of the import of pork in the US market in the period of 1996-2016 years is emphatically analyzed,The background and process of the acquisition is described.Shuanghui international acquisition of Smithfield is an exogenous event.Individuals are often unable to change,so it can be regarded as a natural experiment.This paper adopts the Difference in Difference method,the variables of macroeconomic factors and the virtual variables of month are added one by one.The experimental group is the value of Chinese pork import from the United States,while the control group selects other U.S.meat exports and other major sources of meat in our country.The analysis of the impact of China's imports of American pork products based on this acquisition case shows that our country's direct investment in the United States has promoted the import of pork in the US market.And assuming that the acquisition cases were completed in September 2011 and September 2012 respectively,the Conterfactual Test was carried out,and the conclusion of the increase of pork imports in the United States was still obtained.Further analysis of the annual dynamics revealed that the second year of the acquisition began to promote the import of pork in the United States.Then this paper uses Propensity Score Matching method,the matched group and the control group met the parallelism hypothesis.After using PSM-DID,the core variables and most other variables are consistent with the results of DID regression,and the overall results are robust.Since the adjustment of agricultural policies in China's trading partners will also affect China's meat imports,this paper adds the national annual virtual variable regression to control the adjustment of policies related to agriculture,especially pork production,consumption and export.Annual dynamic analysis shows that when other factors are controlled,the case has a positive effect on pork imports from the United States from the beginning of the first year to the middle of the year after the completion of the merger and acquisition.Considering that the merger and acquisition case was completed in September and approaching the end of the year,the lag period for judging the impact of the merger and acquisition on pork imports is about half a year to one year.In recent years,the production and processing of pork in China has been unable to meet the needs of consumers.In 2007,the export and import of pork had a deficit,but the pork market in the United States was saturated in the same period.In addition,China's food safety has also been banned in recent years.How to use the natural resources of the United States to produce high quality pork and introduce the low cost pork into China is a keynote for Chinese enterprises.At the end of this article,according to the actual situation of Shuanghui international production and operation,the trend of the development of China's pork industry and the international situation of the trade war between China and the United States,some pertinent suggestions are put forward at the enterprise level,the industry level and the national level,hoping that Shuanghui international can obtain the safety of overseas advanced food production and technology through this acquisition,providing domestic consumers with safe pork products,benefiting the domestic food market,and improving the whole industry through China's foreign direct investment,enhancing the competitiveness of China's industry,making our foreign direct investment an important and benign impetus for the global economic recovery and China's economic transformation.