Foreign Effects Of Mergers And Acquisitions In China

With the globalization of world economy and the growth of science and technology, transitional corporations have carried on more and more FDI by cross-border merger & acquisition which has become the most important form of FDI presently. Since the 1990's, foreign capital has been flowed into our country mainly by way of M&A. China became a formal member of the WTO in December 2001, and undertake to extend the investment range. At the same time, the reform of state enterprises also offers objectives for foreign capital M&A. we can predict that foreign capital M&A will become more and more energetic.Cross-border M&A has a lot of positive effects for our country, such as, supplying new source of cash, pushing on technological improvement and industrial upgrade, promoting the transformation of management mechanism to share out the international work more efficiently. However, the fundamental purpose of cross-border M&A is to seek profits and industrial control. On other hand the competition exists in market, intellectual property, patent and technological route. Cross-border M&A not only relate to the increase of source, and also affect the development direction of market-oriented economy and national industry. Under these circumstances, the research of cross-border M&A effect has more practical significance.This thesis first gives an introduction of cross-border M&A patterns and its development route. And against the background of these facts, this thesis reviews the basic theory of cross-border M&A effect. On the basis of these theories, it analyzes positively the positive, negative and synthetical effect of cross-border M&A in China from the micro and macro aspects. After that, the influences of cross-border M&A to our country are analyzed from enterprise's development, region economic difference and foreign capital regulation. At last, combining with the reform of foreign capital policy, the thesis summarizes the effects of foreign capital cross-border M&A in driving policy, neutral policy and regulation policy, and put forward a new thought of foreign capital adjustment.