The Risks And Prevention Of Chinese Companies' Overseas Mergers And Acquisitions Under The "Belt And Road"

Economic globalization has become an objective trend of the world's economic development and an irresistible historical process,actively promoting the growth of the world economy.In the process of economic development,all countries in the world have built a new global economic cycle system according to their own development needs,so that the relations between various countries are closer.Among them,developed countries rely on their own technology and advanced productivity to develop a service-oriented economy,while developing countries rely on the comparative advantages of rich mineral resources and cheap labor to attract developed countries to invest in their own manufacturing.The development trend and characteristics of the world economy are constantly changing with economic globalization.The developing countries,especially China,have made more and more contributions and influence to the world economic development with the rapid economic development.Since the reform and opening up,China has achieved remarkable results in economic construction.Many enterprises are developing rapidly and rising rapidly.With the continuous enhancement of technology and the increasing core competitiveness of enterprises,we need to seek a broader platform in the world market.More and more companies have gone abroad for overseas mergers and acquisitions.Through mergers and acquisitions,resources are re-integrated,the scale of the industry is expanded,the core competitiveness of enterprises is enhanced,and economic efficiency is improved.Compared with other developed countries,my country's overseas M&A history is relatively short.Through more than ten years of learning and experience accumulation in overseas mergers and acquisitions,we have gradually found a development path suitable for Chinese enterprises to go global.With the continuous increase of the Chinese economy,the scale of overseas mergers and acquisitions of Chinese enterprises is also increasing.From the initial merger and acquisition ofstate-owned enterprises,to the present,private enterprises have also joined the M&A army.The M&A industry has also expanded from energy,construction and other fields to automotive energy,life sciences,and other emerging industries as well as healthcare and consumer products."One Belt and One Road" is a major initiative for my country's foreign development.It not only provides domestic enterprises with a good overseas M&A environment and excellent development space,but also brings huge development opportunities to the countries along the route.Most of the countries along the “Belt and Road” are emerging economies.The overall economic foundation is relatively weak,the geopolitics is complex,and the degree of perfection of the legal system varies.Therefore,the M&A risks faced by enterprises have also emerged one after another,which greatly hindered the development process of enterprises' overseas M&A.So how to realize the identification and prevention and control of risks in the strategic choice of overseas mergers and acquisitions,and formulate specific prevention and control measures and solutions have become the main problems that Chinese enterprises need to solve in the process of overseas mergers and acquisitions.Based on the relevant overseas mergers and acquisitions theories and the status quo of overseas mergers and acquisitions of Chinese enterprises,this paper separately researches and analyzes two successful merger cases and two failed merger cases of state-owned enterprises and private enterprises.Including the background profiles,motivations and risk analysis of both parties to the merger and acquisition,it focuses on the analysis of the risk factors of the companies in the process of overseas mergers and acquisitions.Summarized how companies should take targeted risk control measures when facing various risks in the process of mergers and acquisitions.The significance of this article is to analyze the four typical cases separately,and combine the issues that Chinese enterprises need to pay attention to in the process of overseas mergers and acquisitions.Analyze how to use the experience of successful cases and how to avoid problems in failed cases.It then summarizes how Chinese companies can effectively avoid and control risks in overseas mergers and acquisitions under the opportunity of the "One Belt and One Road" initiative,and provide valuableexperience for other Chinese companies to learn from and learn from overseas mergers and acquisitions.This makes this article have theoretical and practical significance to a certain extent.