New Characteristics and Countermeasures of Chinese Company Overseas Mergers and Acquisitions

Abstract

Abstract. In recent years, global mergers and acquisitions is keep expanding in its overall scale. China's overseas mergers and acquisitions scale is also in stable growth. In the first quarter of 2016, China has become the world's largest overseas mergers and acquisitions country in terms of scale. The regional trend of Chinese companies' overseas mergers and acquisitions are increasingly flow to developed countries, where Europe and the North America are the major regions; industry trends are increasingly to the electronics, machinery and financial services. Regional and industrial capital flows change, reflecting the Chinese companies' overseas mergers and acquisitions new strategy: in the global industrial restructuring process, Chinese companies try to obtain advanced technology or to occupy high-end consumer market, and pay more attention to the higher end global industrial value chain. However, due to the relatively short formation time of Chinese multinational companies, the overall competitive strength is not strong, thus the ability to avoid overseas risks is weak. We need to pay attention to quantitative assessment on overseas mergers and acquisitions risks, establish overseas mergers and acquisitions right and interests protect mechanism to support the continuous development of Chinese companies' overseas mergers and acquisitions.