The Legal Risks that Local Chinese Companies face when being Acquired by Foreign Multinational Companies and the Measure

Research Article
Open access

The Legal Risks that Local Chinese Companies face when being Acquired by Foreign Multinational Companies and the Measure

Jia Zhang 1*
  • 1 WuHan College    
  • *corresponding author 19201040206@mail.whxy.edu.cn
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/13/20230708
AEMPS Vol.13
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-69-0
ISBN (Online): 978-1-915371-70-6

Abstract

With the comprehensive and in-depth development of reform and opening up in the last century, as well as since China's accession to the WTO in 2001, foreign multinational companies have aimed at China, accelerated the pace of entering our market. A large number of mergers and acquisitions of Chinese enterprises have penetrated into many industrial fields in China. International mergers and acquisitions have become one of the important ways for multinational companies to enter our market, and many enterprises in China have encountered or will encounter mergers and acquisitions by multinational companies. Due to the lack of specific and detailed laws and regulations in China, the lack of a systematic regulatory mechanism for foreign companies merging with Chinese companies, and the significant differences and gamesmanship between Chinese and foreign merger and acquisition laws, local Chinese companies are exposed to huge risks in the process of being merged by foreign companies. This paper uses legal analysis to explore the legal risks faced by Chinese enterprises in international M&A. It proposes ways to deal with the risks by improving M&A laws and anti-monopoly laws, creating a national brand protection system and actively implementing anti-malicious takeover measures.

Keywords:

M&A, anti-monopoly laws, national brand

Zhang,J. (2023). The Legal Risks that Local Chinese Companies face when being Acquired by Foreign Multinational Companies and the Measure. Advances in Economics, Management and Political Sciences,13,200-209.
Export citation

References

[1]. Wang Renrong. Research on the legal issues of cross-border M&A by multinational corporations. Law Press, 2012.

[2]. Chen Jiagui, Huang Qunhui. Multinational corporations' investment in China and their mergers and acquisitions of Chinese enterprises. Economic Management (16),6(2002).

[3]. Song Zhen. Legal risks of Chinese enterprises in international mergers and acquisitions and their prevention. East China University of Political Science and Law,2019.

[4]. Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Inves-tors,2009.

[5]. Xiao Yanshan, Ma Shaofeng. Successes and shortcomings of China's anti-monopoly law. Journal of Shijiazhuang Institute of Economics 31(05):97-104(2008).

[6]. Yang Chuntao. Legal Risk Prevention of Overseas Mergers and Acquisitions by Chinese Enterprises. People's Forum (11),118-119 (2013).

[7]. Xiang Yaping. Legal Countermeasures for Preventing the Risks of Overseas Mergers and Acquisitions by Chinese Enterprises. SAR Economy (6), 2(2008).

[8]. Wang Liwu, Wang Jianzhong. Legal risks and prevention of overseas mergers and acquisitions of Chinese enterprises. Journal of Beihua University: Social Science Edition (1) ,8(2010).

[9]. Lan Tian et al. Analysis and prevention of financial risks in current overseas mergers and acquisitions of Chinese enterprises. Modern Finance and Economics: Journal of Tianjin University of Finance and Economics (12), 5(2009).

[10]. Lin Zhuying, Wang Nan. Risk prevention countermeasures for value assessment of cross-border mergers and acquisitions of Chinese enterprises. Finance and Accounting: Money Management Edition (18): 63(2008).

Cite this article

Zhang,J. (2023). The Legal Risks that Local Chinese Companies face when being Acquired by Foreign Multinational Companies and the Measure. Advances in Economics, Management and Political Sciences,13,200-209.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

ISBN：978-1-915371-69-0(Print) / 978-1-915371-70-6(Online)
Editor：Javier Cifuentes-Faura, Canh Thien Dang
Conference website: https://2023.confbps.org/
Conference date: 26 February 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.13
ISSN：2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).

References

[1]. Wang Renrong. Research on the legal issues of cross-border M&A by multinational corporations. Law Press, 2012.

[2]. Chen Jiagui, Huang Qunhui. Multinational corporations' investment in China and their mergers and acquisitions of Chinese enterprises. Economic Management (16),6(2002).

[3]. Song Zhen. Legal risks of Chinese enterprises in international mergers and acquisitions and their prevention. East China University of Political Science and Law,2019.

[4]. Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Inves-tors,2009.

[5]. Xiao Yanshan, Ma Shaofeng. Successes and shortcomings of China's anti-monopoly law. Journal of Shijiazhuang Institute of Economics 31(05):97-104(2008).

[6]. Yang Chuntao. Legal Risk Prevention of Overseas Mergers and Acquisitions by Chinese Enterprises. People's Forum (11),118-119 (2013).

[7]. Xiang Yaping. Legal Countermeasures for Preventing the Risks of Overseas Mergers and Acquisitions by Chinese Enterprises. SAR Economy (6), 2(2008).

[8]. Wang Liwu, Wang Jianzhong. Legal risks and prevention of overseas mergers and acquisitions of Chinese enterprises. Journal of Beihua University: Social Science Edition (1) ,8(2010).

[9]. Lan Tian et al. Analysis and prevention of financial risks in current overseas mergers and acquisitions of Chinese enterprises. Modern Finance and Economics: Journal of Tianjin University of Finance and Economics (12), 5(2009).

[10]. Lin Zhuying, Wang Nan. Risk prevention countermeasures for value assessment of cross-border mergers and acquisitions of Chinese enterprises. Finance and Accounting: Money Management Edition (18): 63(2008).

For authors
Guide for authors Policies for authors Aims and scope Subscription Open access policy
For editors
Policies for editors Editorial board
For reviewers
Policies for reviewers Privacy policy

Cookies are used by this site.
Copyright © 2024 EWA Publishing, its licensors, and contributors. All rights reserved, including text and data mining, AI training, and similar technologies.