Multinational Mergers And Acquisitions Of Chinese Enterprises, Effects And Countermeasures Analysis

Since the middle and late 90's, transnational mergers and acquisition (M&A) has become a dominant means of direct investment. In an obvious contrast to it, the proportion of foreign investment by means of M&A to its total figure in our country is rather small. However, with the domestic environment improving and some restricting factors gradually eliminating, particularly since China joining WTO, more and more foreign corporations enter China market by transnational M&A. Transnational M&A changes the traditional way of utilizing foreign direct investment, and brings long-run impacts on China's economic reform.There are two questions of the transnational corporations' M&A (TNCs' M&A) Chinese corporations: the first is the motivations behind TNCs' M&A behavior. The second is the effects brought by M&A, and government and enterprises' reasonable policy responses consist of our main concerns in this dissertation.Starting from literature review on TNCs' M&A, (Chapter 2) the dissertation depicts TNCs' M&A practice in China, include its current, its trend, and its main methods. (Chapter 3) Then, motivations behind TNC's M&A behavior are discussed on the base of TNC's global strategy and the strategy target in China. (Chapter 4) And then the dissertation analyzes the effects brought by TNC's M&A in China. After analyzing positive and negative effects, relative policy responses and management measures both from government regulation level and enterprise management level are proposed. (Chapter 5)Main conclusions in this dissertation are list as follow:1.TNC's M&A practices are featured by: increasing scale of TNC's M&A, TNC's more requirements of corporate control, TNC's M&A spread from manufacture industry to service industry, and more systematic characteristic involved in TNC's M&A.2.TNC's M&A is conforms to the TNC's global strategy. TNC's strategy target is disposing resources and developing the market in China.