Study On China’s Enterprise Of Legal Risk Of Transnational Mergers And Acquisitions And Countermeasures Keeping It Away

2011marks the beginning of12th Five Year Plan, which is closelyrelated with Chinese economic development in the following four years.Based on the11th Five Year Plan, the12th Five Year Plan features theimportance of “going out” strategy in the new period, strengthens theimplementation of that strategy, supports risk reduction and improves therelevant risk defending system. Legal risk is a remarkable characteristic.One of the important elements of “going out” strategy is transnationalmerges and acquisitions (m&a). However, law and regulations ofdefending legal risk in China are insufficient. Meanwhile, enterprises donot pay enough attention to the legal risk prevention. Thus, the two factorscontribute to the China’s domestic enterprises’ failure in the transnationalm&a in recent years. Therefore, the current difficulty for China is how toefficiently encourage our enterprises going global and manage the legalrisk that enterprises and country encounter during transnational m&a.Consequently, this thesis will conduct a research on China’s enterprisetransnational m&a legal risk prevention in the following aspects.First, this thesis begins with the transnational m&a “going out”strategy, introduces the definitions and theory of it, concludes the current choices and characteristics of China’s enterprises’ m&a, and analyzes theconcept definition, types and contributing factors of China’s enterprisetransnational m&a legal risk.Moreover, at the beginning of12th Five Year Plan and at the backdropof post economic crisis, this thesis further discusses the current situationand defects of abroad investment law, including the issues of singlefinancing channel, foreign exchange control, overseas investment servicemechanism, insurance mechanism and so on. It finally concludes thatimproper handle of those legal issue will greatly hinder China’s enterprisetransnational m&a.Last but not the least, taking China’s current situation intoconsideration and learn from the mature experience of European andAmerican countries, this thesis advocates some proposals for China’stransnational investment laws risk prevention legislation, which involvesthe construction of integrated abroad investment m&a legislation andreform, improve transnational m&a management mechanism, perfectforeign exchange and financial management mechanism, legislateinvestment and tax preferential, bilateral and multilateral investment lawand so on. In addition, this thesis also provides some suggestions for legal risk prevention from enterprise’s micro-aspect, which consist ofconscientious investigation, upgrade enterprise’s core competitiveness andeffective manage legal risk with the current remedial mechanism.