The favorable influence of foreign capital merger and acquisition on China's economy 1. Foreign capital merger and acquisition is conducive to optimizing industrial structure and strategic adjustment of state-owned economy. First of all, foreign mergers and acquisitions help to change the market structure. Blind investment, repeated construction and overcapacity in some industries in China are prominent problems in the current economic operation. Especially in the capital allocation of household appliances, automobiles, beer, medicine and many other industries, capital overlap and capital dispersion coexist. In the absence of exit mechanism, the price war has brought great pressure to enterprises in various industries, leading to low-level excessive competition in the industry and serious waste of resources. By integrating industrial chain and market participants, foreign M&A will make China's market structure more reasonable and ultimately optimize its industrial structure. Secondly, one of the important tasks of the current state-owned economic reform is the strategic adjustment of the state-owned economy, and the reorganization of property rights of state-owned enterprises is the premise of the adjustment of the state-owned economy. Regardless of financial resources or management, China's private capital cannot undertake large-scale state-owned assets, transform state-owned enterprises, and participate in corporate governance and management after transformation. Therefore, the reform of a large number of state-owned enterprises urgently needs the active participation of foreign capital, especially * * companies with abundant capital, advanced management and high technical level. The merger and acquisition of state-owned enterprises by foreign capital is actually a property right transaction between foreign capital and state-owned enterprises, which will lead to the adjustment of property right structure of state-owned enterprises, and finally lead to the adjustment of industrial structure, product structure and regional structure. 2, is conducive to the introduction of advanced technology and management experience. Companies in developed countries not only have huge funds, but also bring advanced science and technology, skilled management methods, monopolistic patents and technologies and advanced management experience. After M&A, China enterprises can guide domestic personnel to go out to study and continuously cultivate high-end talents through the intervention of foreign technicians, which can accelerate the technological progress of enterprises; At the same time, through the participation of foreign capital in enterprise management, we can learn from the mature and advanced management experience of foreign capital, share the whole market channel of foreign-funded enterprises, and form a better penetration in operation, so that the company can make use of the brand advantage, market advantage and management mechanism of * * company, promote the better integration of technology, products and management, and rapidly enhance its core competitiveness. At the same time, by imitating and absorbing foreign technology, China enterprises strengthen their own technological research and development capabilities, realize secondary technological innovation, and accelerate the upgrading of industrial structure. 3. The efficiency of resource allocation is improved. The process of enterprise merger and acquisition is actually the process of economic resource reorganization. On the one hand, it can promote the transfer of production factors to more efficient fields; On the other hand, the utilization efficiency of economic resources, especially production factors, can also be improved through complementary advantages and joint development. The improvement of factor productivity is an important driving force for economic growth. In the era of accelerating scientific and technological progress, factor productivity is the fundamental force that determines the growth of national economy. The improvement of factor productivity is generally driven by four reasons: the increase of capital accumulation (investment); Improve the quality of workers; More efficient allocation of resources (such as the transfer of capital and labor to efficient departments and enterprises); Technological progress. * * Merger and acquisition of Chinese enterprises can rapidly develop large enterprise groups, multiply their economic strength, enhance their advantages in capital, technical ability and talents, and increase the market share of industrial output value of large enterprise groups in sales. The adverse impact of foreign M&A on China's economy is 1, which is likely to lead to monopoly and restrict competition of * * companies. * * After the company uses capital operation to acquire domestic enterprises, it will gradually occupy a larger market share by virtue of its strong strength, and may monopolize or attempt to monopolize some domestic industries. In recent years, the proportion of total industrial output value of * * company in * * company is on the rise. In light industry, chemical industry, medicine, machinery, electronics and other industries, the products produced by its subsidiaries have occupied more than 1/3 of the domestic market share. In addition to the qualitative change of the market competition pattern through the merger of two or more domestic enterprises in the same industry, this way of direct merger and acquisition of powerful enterprises in China avoids the competition with powerful enterprises in China. For example, * * Company acquired all domestic manufacturers of printing materials and photographic equipment (except Le Kai) to form a dominant market position. * * With its technical advantages, brand advantages and economies of scale, the company can build higher barriers to entry, and it is possible to raise the price above the level of complete competition in order to obtain huge monopoly profits. If foreign mergers and acquisitions lead to monopoly, foreign investors may control the domestic market, formulate monopoly prices and carve up market strategies, undermine market competition order and harm consumers' interests. 2. Restrain the technological innovation ability of domestic enterprises. The entry of foreign capital into China has a crowding-out effect on the original local science and technology, and foreign capital holding is actually a denial of "autonomy". Foreign capital firmly controls the core parts, key areas and high value-added parts of some domestic enterprises through mergers and acquisitions. Technology is the core advantage of * * company, relying on technological advantages to expand abroad. How to maintain the monopoly position of technology is a particularly noteworthy issue, so * * Company strictly controls the diffusion of advanced technology. In addition, because * * Company strictly controls and protects its core technologies, the participation and contact of domestic personnel are limited, especially because most of the technologies owned by * * Company are proprietary technologies, coupled with strict control and confidentiality of technologies, the technology diffusion is greatly reduced. They often take various measures to strictly limit the technological innovation of China enterprises. 3. The loss of state-owned assets and national brands. On the one hand, state-owned enterprises were established in the early stage of China's reform to establish a modern enterprise system. At present, China's enterprise assets evaluation system and evaluation standards are different from some international standards adopted by the five major accounting firms generally selected by * * companies, resulting in different evaluation results. If the evaluation is high, it is unacceptable to foreign businessmen. If the evaluation is low, the so-called loss of state-owned assets will occur. In order to obtain more foreign investment, some regions have implemented "super-national treatment" for foreign investment and promised to give foreign investors rich profit returns, which has caused disorderly competition among regions and huge losses of national wealth. There are still quite a few enterprises that have not evaluated the state-owned assets, and the phenomenon of undervaluation is more common, resulting in a large loss of state-owned assets. In addition, due to the "owner absence" and "insider control" of state-owned enterprises, there are problems of moral hazard and bribery risk of operators in enterprises, resulting in the loss of state-owned assets. On the other hand, after the merger and acquisition of China enterprises, foreign capital shelved the brands of domestic enterprises, and the vacated market space was quickly occupied by foreign brands, trampling on the intellectual property rights of China enterprises; Or buy shares, brands or proprietary technologies of domestic enterprises at low prices and devour our national brands. In the domestic equipment manufacturing industry, the cruel reality that China and China have lost their brands, markets and industrial platforms has been repeated in the cases of foreign capital mergers and acquisitions such as * * machinery, * * machinery, * * motor factory, * * bearing factory, * * combine harvester factory, * * Fu Wei, * * chemical machinery and * * gear factory. The above is the relevant knowledge compiled by Bian Xiao for everyone. I believe you have a general understanding through the above knowledge. 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Legal objectivity:
Merger and acquisition of domestic enterprises by foreign investors shall conform to the requirements of China's laws, administrative regulations and rules on investor qualifications and industrial, land and environmental protection policies. Merger and acquisition of industries that foreign investors are not allowed to operate alone in the Catalogue of Industries with Foreign Investment shall not lead to foreign investors holding all the shares of the enterprise; In the industry that needs Chinese holding or relative holding, after the merger of enterprises in this industry, China should still hold a holding or relative holding position in the enterprise; Foreign investors are prohibited from engaging in industries, and foreign investors are not allowed to acquire enterprises engaged in such industries. The business scope of the original investment enterprise of the merged domestic enterprise shall meet the requirements of relevant foreign investment industrial policies; Do not meet the requirements, should be adjusted.