A Review Of "Foreign Government - Controlled Transactions" Under

Benefited from the rapid development of technology and international trade, by virtue of its unique edges, the overseas M&A is popular among the enterprises from all over the world, and becomes the most universal investment pattern.The importance of the two countries, China and America, is self-evident. On the stage of international trade, the two countries are not only rivals, but also partners. In this situation, America becomes the most significant land for the enterprises from China to carry out their overseas M&A businesses.However, due to the increasing concerns about the American national security by the US government, and the irrational legislations about the relationship between the State-invested enterprises and the government in China, the M&A businesses carried out by the State-invested enterprises of China are frequently hindered a legal system under FINSA called " Transactions Controlled by Government ".(Abbreviation ’TCG’ will be used below)Considering the lack of detailed researches about FINSA in China, this paper tries to study on the TCG under FINSA, which is formally enacted in 2007. On the basis of evaluating the system objectively in accordance with the its causes and rules, the irrational legislations about the relationship between the State-invested enterprises and the government in China will be summarized and analyzed in this paper. The legislative suggestions concerning the answers of State-invested enterprises of China to the TCG under FINSA after the reference to the experiences of other countries are also included in this paper.This paper consists of three parts :Chapter 1 is an outline of TCG under FINSA. In accordance with the rules for the implementation of FINSA, not only the concept of the TCG under FINSA, but also the series of relevant legal concepts will be detailedly introduced in this chapter. The causes of TCG under FINSA will be summarized in this chapter after the demonstration of the development of the legal system. The application procedures of the TCG will also be introduced in this chapter.Chapter 2 is the evaluation of the TCG. On the basis of the demonstrations above, this chapter tries to objectively evaluate the legal system in the angles of the protection of American national security, the relations with the investment liberalization, and the definition and rigorousness of the system itself.Chapter 3 reveals the irrationality existed in the legislation framework in terms of the relationship between the State-invested enterprises and the government. This chapter will first focus on the introduction of the irrational situation about the performance of the functions as a investor, which shouldered by the relevant departments or institutions of government. This chapter will then discuss the negative influences brought by the contradiction between the situation mentioned above and the TCG under FINSA to the M&A businesses carried out by the State-invested enterprises of China in America. Finally, on the basis of the reference to the experiences of other countries, this chapter will provide some available suggestions about rational performance of the government, in terms of its function as an investor to the State-invested enterprises in future legislation, so that the M&A businesses will smoothly carried out in America afterward.