Study On The Anti—monopoly Legal Regulations On Foreign Mergers And Acquisitions In China

With the development of social and economic, and the progressing of the science and technology, at the end of the20th century, another large-scale multinational merger wave began. At the moment, China was reforming and opening up, there is no doubt that China is also involved. Especially after accessing to the WTO, foreign capital flow into the Chinese market rapidly and it brings capital, advanced management experience for Chinese enterprises who are still in the exploratory stage, it also promotes China’s industrial restructuring, rational use of resources, and the introduction of competition mechanism. Foreign M&A is a coin, it also has two edges, one is good opportunities for Chinese enterprises, and another is the challenges coming. Foreign companies M&A of domestic enterprises on a large-scale, resulting in the loss of our national brand, and higher dependence of the foreign technology and capital. It is more important that foreign M&A is so excessive, and achieves enough market shares, leading to limiting competition, and the formation of monopolies in the market to domestic enterprises and even the harm for our national economic security will be unpredictable. How to regulate foreign excessively mergers and acquisitions has become a priority. Currently, most countries in the world have enacted antitrust laws and regulations, China also introduced China’s "economic constitution", that is Anti-monopoly Law in August2007, as well as subsequent laws and regulations. The Antitrust Laws and these regulations provide some legal basis for regulating foreign M&A effectively. In fact, The Antitrust Laws and these regulations also fill the legal gaps of regulating monopoly. But these provisions is very principled and strong, and there are a lot of loopholes, such as inadequate legislation, ineffective legislation, operability is not strong and many other issues. In order to ensuring that our interests in the fierce competition around the world, China urgently need to improve the system of antitrust laws.