Anti-monopoly Research On Foreign Capital Mergers And Acquisitions

Encourage and facilitate foreign capital mergers and acquisitions is an importantway of using and recommending foreign capital in China. In fact, from thirty years ofreforming and opening up policy, China has become the hot area of foreign capitalmergers and acquisitions. Foreign capital mergers and acquisitions can help to solvelacking funds of our domestic construction and promote national economicdevelopment. But at the same time, Its negative effect is also obviously. Transnationalcorporations through the way of holding absolutely Equity to pressure our nationalenterprises, occupy the market’s proportion, have been forming monopolistic trend inrelated industries in China, even threaten our national economic security. In order toeffectively regulate the negative effects of monopoly by foreign capital mergers andacquisitions, China has published a series of laws and regulations: Such as in August2006, we promulgated the “provisions of foreign capital mergers and acquisitions ofdomestic enterprises,” it dedicates a special chapter on review system of foreigncapital mergers and acquisitions in detail.“Anti-monopoly law” which promulgated inAugust2008, Clearly defined the “system of national security review” by foreigninvestors merger and acquisition Chinese enterprises. However, it should be noted,China’s anti-monopoly legal systems by foreign capital mergers and acquisitions alsohave many disadvantages: Like articles scattered, lack of system and coordination;“Anti-monopoly law” has only few clauses and they are all very principle, it also lackof Supporting Implement rules; The Operability of reporting standards ofanti-monopoly is not high; Reporting system have not corresponding “Public hearingsystem” and “Prior consultation system”; The antitrust enforcement agencies’distribution of power is not reasonable; Has not yet constructed Scientific“Extraterritorial Application’s System” and so on. Therefore, this paper focuses onthese questions, by means of comparative analysis and case analysis method, on thebasis of United States and Germany’s anti-monopoly advanced experience, analyzingthe questions which turn out in our Anti-monopoly legislation and practice. Then forimproving China’s anti-monopoly system of foreign capital mergers and acquisitions,author proposes some feasible suggestions.The paper is divided into three chapters, in the first chapter author analyze themeaning of foreign capital mergers and acquisitions, then account of the departmentof foreign capital mergers and acquisitions. Proposed foreign capital mergers andacquisitions have been already forming monopolistic trend in related industries inChina, even threaten our national economic security. At the same time, author analyzethe negative effects of monopoly by foreign capital mergers and acquisitions, thenpoint out the practical significance of Antitrust Regulation of foreign capital mergersand acquisitions. In the second chapter, author first reviewing and analyzing currentlegislation of China’s anti-monopoly system of foreign capital mergers and acquisitions. Then through introducing the United States and Germany’s advancedmerger Anti-monopoly Law system, made reference to perfect our anti-monopolysystem of foreign capital mergers and acquisitions. Chapter III of the paper as themost important chapter, the author through combined the case of Coca-Cola MergedHuiyuan, contrary to the problems and defects of China’s anti-monopoly law offoreign capital mergers and acquisitions operation in practice, then put forward myown proposals. Content including: Entities in foreign antitrust regulation of foreigncapital mergers and acquisitions should be scientific definition the real standard ofdominant market position; in the Rules of procedure, the author declared theAnti-monopoly Reporting System should be both have tolerance and comprehensive,refining reporting standards and the “Public Hearing System”, while the “Priorconsultation system” should be introduced. In addition, a reasonable division of theantitrust enforcement agencies’ power, constructing scientific “ExtraterritorialApplication’s System”, is also of great significance on improving China’santi-monopoly system of foreign capital mergers and acquisitions.