China Cross-Border Mergers and Acquisitions Policy Report 2006

Author: Organization for Economic Cooperation and Development
Publisher:
Publish Date: 2006-04-01
Features: China has become one of the main destinations for foreign direct investment (FDI) globally. However, despite cross-border mergers and acquisitions (M&A) becoming the primary form of FDI worldwide, their role in attracting FDI to China remains limited. This report focuses on analyzing the progress China has made in establishing a regulatory framework for cross-border M&A in recent years, while also highlighting the efforts of the Chinese government to encourage more FDI through this form, as well as the challenges it faces. Therefore, the report also summarizes policy recommendations drawn from the experiences of OECD member countries to address these challenges. The report is comprehensive, in-depth, rigorous in its writing, and objective in perspective, particularly in offering many pertinent recommendations that are truly insightful beyond commercial interests. Currently, China has become one of the main destinations for foreign direct investment globally. However, as cross-border M&A gradually becomes a significant form of FDI flows, the share of M&A activities conducted in China remains relatively small. Cross-border M&A can play a crucial role in the restructuring of state-owned enterprises, particularly in revitalizing China's Northeast old industrial base. The Chinese government has implemented relevant regulations to liberalize cross-border M&A, but these regulations and policies still need further liberalization and increased transparency. China's Cross-Border M&A Policy Report 2006 reviews the development of China's investment policies since 2003, evaluates the progress China has made in establishing a sound and effective cross-border M&A policy framework, identifies the remaining obstacles, and proposes policy recommendations. This report is part of the Organization for Economic Cooperation and Development's ongoing collaboration with non-member countries worldwide. Currently, China has become one of the main destinations for foreign direct investment globally. However, as cross-border M&A gradually becomes a significant form of FDI flows, the share of M&A activities conducted in China remains relatively small. Cross-border M&A can play a crucial role in the restructuring of state-owned enterprises, particularly in revitalizing China's Northeast old industrial base. The Chinese government has implemented relevant regulations to liberalize cross-border M&A, but these regulations and policies still need further liberalization and increased transparency. China's Cross-Border M&A Policy Report 2006 reviews the development of China's investment policies since 2003, evaluates the progress China has made in establishing a sound and effective cross-border M&A policy framework, identifies the remaining obstacles, and proposes policy recommendations. This report is part of the Organization for Economic Cooperation and Development's ongoing collaboration with non-member countries worldwide.