Analysis On The Influence Of Tariff Barriers On The Success Rate Of Overseas M&A In China’s Manufacturing Industry

In the first year of the 14 th five year plan,China will continue to carry out reform and opening up to the end.In the new era and new background,overseas mergers and acquisitions of China’s manufacturing industry will also encounter more new opportunities and challenges;Under the background of China’s continuous promotion of high-quality "going global",the success rate of overseas M&A in China’s manufacturing industry has always been at a low and medium level;"Made in China" has also been continuously suppressed by trade protection in many ways in recent years.How "made in China" can overcome many difficulties and "go global" has become a topic that scholars need to conduct in-depth research.From the perspective of trade protection,this paper will study the impact of tariff barriers on the success rate of overseas M&A of Chinese manufacturing enterprises,and expand the heterogeneous impact of tariff barriers on the success rate of overseas M&A.This paper empirically studies the impact of tariff barriers on the success rate of overseas M&A of Chinese manufacturing enterprises by using the micro enterprise data of overseas M&A of 63 countries or regions from 2008 to 2018 and the measurement method of Logit model.The empirical results show that:(1)tariff barriers negatively affect the success rate of overseas M&A of Chinese manufacturing enterprises;(2)The negative impact of tariff barriers on the success rate of horizontal overseas M&A is greater than that of vertical overseas M&A;(3)In the host countries with better business environment,the higher the degree of facilitation of M&A transactions,the more it can save the cost of M&A,so as to make up for the negative impact of tariff barriers on the success rate of overseas M&A and effectively improve the success rate of overseas M&A;(4)Tariff barriers have a great negative impact on the success rate of overseas M&A of enterprises in capital intensive industries,but have no significant impact on the success rate of overseas M&A of enterprises in non capital intensive industries.To sum up,this paper puts forward some relevant policies and suggestions: first,China’s manufacturing industry should actively deal with tariff barriers and develop high-quality overseas mergers and acquisitions;Second,China’s manufacturing industry should try to avoid horizontal overseas mergers and acquisitions to prevent further restrictions on foreign investment by the host country;Third,China’s manufacturing industry should pay attention to enhancing its own technological R &D and innovation to cope with the more complex overseas M&A environment in the future;Fourth,the overseas M&A activities of China’s manufacturing industry should be carried out in the host country with a better business environment,so as to further improve the transaction efficiency.The improvement of transaction efficiency can have a negative impact on the barriers.