The trajectory of open strategies in the era of mergers and acquisitions

Author: Wang Wei
Publisher:
Publish Date: 2004-09-01
Features: The market economy is a "invisible hand," while the government in transition is a "restless hand." China's management buyouts (MBOs) should move from conspiracy to open strategy, and remain highly vigilant against the transformation of "retiring the state and entering the private sector" into "retiring the state and entering the foreign sector." The rules of the State-owned Assets Supervision and Administration Commission (SASAC) should not replace national law; overly emphasizing the prevention of "loss of state-owned assets" appears unfair. Never portray the "Russia-Japan War" type of acquisition competition between global companies and China as "absorbing foreign investment." Be wary of government departments and local forces colluding with global companies to consolidate and divide monopolistic interests that do not belong to the public. Focus on the threats of global mergers and acquisitions to national economic security, and truly establish a national strategy for utilizing foreign investment. State-owned enterprises can sell iron, but they cannot smash pots. The "great leap forward" in restructuring will destroy the integrity of the value chain. China's economy is undergoing a process of upgrading from enterprise competition to industrial integration, which is also the foundation for future national competition.