The Influence Of Foreign Capital Merger On Competition In The Market Order In China And Countermeasures

Since the 1990s, with the fifth wave of global M&A, cross-borderM&A has been the major way of FDI(foreign direct investment). AfterChina's entering into the WTO, our government issued a series ofprinciples and laws. With the principles and laws, foreign capital M&Awas supervised on some extent and was also paid much more attention to.And because of the objective require of state-owned enterprises'revolution, foreign capital M&A will surely become the most importantway of multinational companies' strategic expanding and FDI (ForeignDirect Investment). On the other hand, foreign investment has been an important part ofnational economy. In China, foreign investment has already gotconsiderable influence, and will take more and more important role inChinese economy. Considering the gross of FDI, foreign investment hasno threaten to the safety of our national economy. However, we can findthat the influence of multinational companies has been obviouslyenlarged, standing on the midst viewpoint. In some industry,multinational companies have achieved dominant position in marketcompetition, with their advantages of technology, capital and ownership.China Industry and Commerce Ministry issued an report on TheMultinational Companies' Competition Exclusion Behavior in Chinarecently, which reflect the negative influence of the multinationalcompanies to the order of market competition. Above all, it's urgent and meaningful to study about the influence offoreign capital M&A to avoid the negative influence of multinationalcompanies and to protect the order of our market competition, which isalso the subject of the thesis. The thesis analyzes the characters of foreigncapital M&A, probes into the demands of both sides and the macroscopicenvironment of domestic and abroad market, and points out the basicjudgment that foreign capital M&A must be the most important way ofFDI before long. Further, the thesis analyzes the influence of foreigncapital M&A to the order of our market competition, using boththeoretical and practical approach. At the end, the thesis introduces theregulating practice of other countries, and puts forward some suggestionsto our government's regulating on foreign capital M&A, considering thereal circumstance of China. The thesis expounds as following: Chapter I is the analysis of the history, the status quo and thetendency of foreign capital M&A. It begins with the history, thananalyzes the characteristics of the industries distributing, the locationsdistributing, the target enterprises' choosing and the mode of M&A. Inthe end, based on the analysis of the tendency of foreign capital M&A,the thesis points out that the foreign capital M&A will be the mostimportant way of FDI, which is the premise of the whole thesis. Chapter II probes into the influence of foreign capital M&A to theorder of our market competition. This chapter begins with the theoreticalanalyzing of the influence of three types of M&A to competition, andanalyzes both the long-run and short-run effect of cross-border M&Abased on the introduction of the relationship of FDI and market structure.The author, than, probes into the influence of cross-border M&A to themarket competition of developing countries. In the end of this chapter, theauthor analyzes the influence to our own country and the monopolytendency of foreign capital M&A. Which is worth to say, this chapter isbased on the fact that FDI has got considerable influence in our market.Through the analysis, we can find that the FDI in China has achieved theconstitutive premise of monopoly and has had some obvious behavior ofcompetition exclusion and even monopoly. The foreign capital M&A willfurther consolidate the dominant position of MNC. Chapter III is about the regulation of foreign capital M&A. Bases onthe formal research and the analysis on the theories of cross-border M&Aregulation, the author reviewed the history and status quo of theregulation in our country, and puts forward some suggestions to theconsummation of our Anti-monopoly law. At last, the author offers theplan...