| With the progress of economic globalization and the rapid advancement of scientific technology, the multi-national companies have been keeping launching large-scale and significant global mergers and acquisitions in recent years in order to strengthen their competence and implement world-wide operational strategies. This trend of global M&A is the consequence of countries' increasing economic dependency on each other and has already become an obvious feature of current world economy.Since the entry of WTO, China has kept its continuous opening up process in economy, which means Chinese enterprises have to take part in even more fierce market competition internationally. Compared with advanced countries, China's cross-nation business is still at its infant stage in terms of investment volumes. However, multi-national companies in china are growing in both size and number.Nowadays, the fact of RMB's rise in value has caught great attention in the world. With the increasing appreciation of RMB, the overseas asset price will decrease for Chinese enterprises, which enables Chinese companies to acquire foreign assets at a lower cost. Undoubtedly, increasing exchange rate of Chinese Yuan will boost overseas investment for Chinese enterprises. The current situation in China is quite similar to that in Japan in 1980's, when Yen's appreciation greatly stimulated Japanese investor's passion and consequently brought corresponding problems as well. Facing good overseas investment opportunities generated by continuous RMB's rise in value, Chinese companies should grasp at these chances and make rational overseas investment decisions.Despite the trend of economic globalization, many countries have set up trade barriers and other obstacles in order to protect local companies' interests. It will be wise to skip these barriers by operating cross-nation business. Generally speaking, there are two methods of overseas investment to make cross-border business, namely Greenfield investment and M&A. Compared with Greenfield investment, the efficiency of M&A is usually higher. Obviously, how to apply cross-border M&A theory to discussing the cross-border business based on Chinese companies' circumstances is a worthwhile topic. Most of the research that has been made focuses on the M&A of Chinese enterprises by foreign MNEs, while limited efforts have been done to analyze Chinese enterprises' overseas M&A activities. Besides, some papers ponder much on the reality basis of Chinese companies' overseas actions, while little has been elaborated on their blind motivation of M&A with economics principles. Considering that, the paper starts from cross-nation business theory and the reality basis for Chinese enterprises who are at the initial stage of cross-border M&A, analyzes M&A motivations and current problems with Chinese companies, explains a few strategic options, and provides corresponding thinking on how to grasp at the chances and face up to the challenges.Generally, the paper is aimed to illustrate the following points: (1) explains it is necessary and a good timing for Chinese enterprises to achieve cross-nation operation by cross-border M&A through the background analysis; (2) explains the correct motivation of cross-border M&A by economics principle analysis and gives advice on avoiding blind M&A after introducing problems that Chinese companies come across; (3) gives an analysis of strategic options, including regional and industrial options, in the purpose of achieving successful overseas M&A for Chinese enterprises; (4) points out problems with Chinese enterprises and the government by analyzing current circumstances of overseas M&A, and gives fair suggestions on policies.The paper consists of five chapters, which can be divided into three parts.The first part is the first chapter of overview, which explains the paper's research background and significance, introduces paper structure, and concludes the innovative arguments and shortcomings.The second part is also the second chapter providing a general background analysis. This chapter introduces the western cross-border M&A theory and world-wide representative points of view, summarizes domestic and overseas investment environment, and explains the high efficiency of cross-border M&A as an important type of foreign direct investment (FDI).The last part is composed of the third, fourth and fifth chapter. It makes detailed analysis and research on current situation and problems with Chinese enterprises' cross-border M&A in terms of different perspectives ranging from motivation analysis, blindness in M&A for Chinese companies, to specific strategic options, macro politics and micro enterprises. Valuable suggestions are also provided here.The whole three parts not only cover general theories but Chinese enterprises' actual practice of cross-border M&A as well, from which discloses strategic options of cross-border M&A which are likely to unleash Chinese companies' comparative advantage. |
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