Regional Trade Liberalization And Cross-border Mergers And Acquisitions Of Chinese Enterprises

Since the 1990s,economic globalization and integration have developed rapidly At the same time,however,globalization has also brought the problem of unbalanced development between countries.The stable and open international trade and investment environment is facing increasingly severe tests.However,many Chinese enterprises who have accumulated a certain amount of capital in global production have an urgent need to improve technology and upgrade industries,as well as a group with brand influence and competitiveness of Chinese enterprises need a broader international stage...Therefore,to continue to adhere to the opening strategy of "going out" is still an important way to solve the current demands of Chinese enterprises.Cross-border M&As have become the main way for Chinese enterprises to make FDI.In the era of rising protectionism,it is of great strategic significance to promote local enterprises to maintain their competitive advantages and position through cross-border mergers and acquisitions,and at the same time to enhance the voice of Chinese enterprises in the international arena,and to let Chinese enterprises and Chinese standards "go outBased on foreign trade and investment theories,combined with China’s national conditions and enterprise practices,this paper summarizes the current situation of cross-border M&As at home and abroad,and explores the relationship between the two by combining theoretical analysis with empirical analysis.Based on the data of Chinese enterprises’ micro cross-border M&As from 2000 to 2017,this paper constructs a fixed effect model,and studies the impact of regional trade liberalization on Chinese enterprises’ cross-border M&A transaction intentions by combining the method of two-stage least square.The study finds that:(1)FTAs signed between China and trade partners has the“contracting effect",which would increase the M&A intention of Chinese enterprises.(2)FTAs have a“spillover effect" brought by the newcomers of the agreements.But the effect has a limited duration.(3)The heterogeneity of enterprises and agreements makes the "contracting effect" represent different characteristics.(4)Free trade agreements will reduce the incentive for Chinese enterprises to conduct cross-border M&As in non-contracting partiesBy studying the relationship between regional trade liberalization and Chinese enterprises transnational M&As,the paper shows that promoting trade liberalization process,strengthening regional trade cooperation is a practical and feasible way to promote foreign direct investment,the results also prove the correctness of the Chinese government lowering trade tariffs and the further opening-up strategy direction.In addition,the Chinese government still needs to further:(1)take the initiative to push forward the negotiation of free trade agreement and grasp the initiative of the agreement rules;(2)promote the upgrading of existing provisions and deepen the relationship between enterprises and governments;(3)actively promote the negotiation of consistent trade and investment terms and reduce differential treatment;(4)give full attention to the cross-border M&As needs of manufacturing enterprises and non-state-owned enterprises,and provide them with active financial and service support.