Research on Foreign-Controlled Mergers and Acquisitions of State-Owned Enterprises

Author: Sang Baichuan
Publisher:
Publish Date: 2005-06-01
Features: Cross-border mergers and acquisitions (M&A), a major form of foreign investment internationally, are only beginning to emerge in China. There are still many obstacles for multinational corporations (MNCs) to acquire Chinese state-owned enterprises (SOEs), including regulatory barriers such as foreign equity ownership limits in certain industries, rules for the valuation and disposal of state assets, capital market openness issues, and the applicability of company law. Additionally, changes in foreign investment practices have caused many people to feel anxious. Faced with these challenges, academic research has lagged significantly. Therefore, it is necessary to focus on this major topic: the acquisition of Chinese SOEs by MNCs. This manuscript begins by examining the development trends of international investment, integrating foreign investment in SOEs with China's overall strategy for attracting foreign investment. From the perspectives of SOE reform and strategic restructuring of state assets, combined with existing cases of MNCs acquiring Chinese SOEs, it analyzes and studies the current status, potential solutions, and specific measures for MNCs acquiring SOEs, as well as the impact of such acquisitions on national economic security, the development of the national economy, and other aspects of the economy.