On Foreign Acquisitions Of Domestic Enterprises Legal Regulation

As an important transaction form of the property right of enterprises, M&A by foreign investors has become the major way of international direct investment and has profound impact on the economy structure in today's world. China is the biggest developing country in the world, and has been attracting international investors because of our huge market. Our country has moved away a lot of limitation on fields of foreign investment. Therefore, international M&A in China has come into in large scale. M&A by foreign investors brings capital, technology and experience which are needed by enterprises, and has positive promotion to the reformation of state-owned enterprises and establishment of modern enterprise system. However, M&A by foreign investors have two sides, which can also have negative effect on the development of economy of host country, the typical one is monopoly. It will influence the development of national industry of host industry, and even control the economic arteries of host country and impact the national economy safety. In order to prevent the monopoly that may arise during the course of M&A by foreign investors, many countries in the world, such as America, Germany and Japan, formulate legal system which takes anti-monopolization law as core, e.g. the Antitrust Act of America, German Act against Restraint of Competition and Anti-monopoly Act of Japan.However, Chinese legislation on M&A is not perfect, and the Anti-monopoly Act which is regarded as the core legislation to intervene the economic development is not promulgated up to present. The author chooses the"Legal Regulation on M&A of Domestic Enterprises on M&A by Foreign Investors-Consideration from the Anti-monopoly"as the topic of the thesis. This paper construes the definition of M&A by foreign investors at first, then analyzes the reason and basic principle of anti-monopoly legislation upon M&A by foreign investors. Taking the anti-monopoly legislation of America and Germany for reference, the paper analyzes the present legislation on M&A by foreign investors and its defects, and advises how to improve the anti-monopoly legislation of China upon M&A by foreign investors.