On The Foreign Mergers And Acquisitions And The National Economic Security Review

In recent years, with the development of economic globalization, more andmore foreign companies purchase Chinese enterprises. Foreign mergers andacquisitions have some positive impact on the economic development of china, butalso bring a threat on China’s national economic security. Most countries have set upnational economic security review system of foreign mergers and acquisitions. U.S.legislation in this area is relatively mature and perfect and China in this respect thereis still a need to improve. Foreign M&A is a double-edged sword, so we can notnegate foreign mergers and acquisitions just because of their adverse effects. Weneed to learn from the practice of the United States which strives to achieve awin-win situation between the foreign mergers and acquisitions and nationaleconomic security. This paper will research the impact of foreign mergers andacquisitions on national economic security. The paper will explore legislative reviewof the national economic security in order to achieve a win-win situation betweenthe foreign mergers and acquisitions and national economic security.The first part of this paper, it will introduce from the case of Coco-colaacquisition of Huiyuan and the basic theory of foreign mergers and acquisitions andnational economic security. It mainly talks about the concept of foreign mergers andacquisitions and national economic security, the basic form of company mergers andacquisitions, the developing trends of foreign mergers and acquisitions in China. Theconcept of national economic security is still controversial and the paper studies thedefinition of the concept of different scholars. Foreign M&A developing trendsindicate that more and more obvious impact on national economic security, sonational economic security review is necessary; second part talks about the impact offoreign mergers and acquisitions on national economic security, such as monopoly,impairing national brand. The foreign investment threats to Chinas nationaleconomic security by these means; third part introduces the foreign legislation ofnational security review on foreign mergers and acquisitions and the Enlightenmentto China. By exploring the legislation of national economic security review in the United States and Japan, China learns from them to protect national economicsecurity. China learns from the practice of the United States which encourages theintroduction of foreign capital and also protects national economic security in orderto achieve a win-win situation between the two; the fourth part introduces thedeficiency of legislation of Chinas economic security review and how to improve it.China doesn’t have a perfect legal system of foreign mergers and acquisitions. Theproblem is that the legislative level is low and there are many contradictionsbetween the law. The paper analyzes the deficiencies of the law through analysis ofthe Carlyle Xugong M&A case and put forward countermeasures to perfect thelegislation of the state economic security review.