Abstract
Foreign capital merging and acquiring China enterprises has recently become an economic and legal hotspot event that has attracted extensive attentions, and practice has proven that merging and acquiring leading enterprises and in turn controlling the overall industry to monopolize the industry have seriously endangered the industry security of China. Limited by various imperfections in legal force and application, the existing laws cannot fundamentally protect the industry security in foreign capital merger and acquisition. To improve the legal system for the supervision over foreign capital merger and acquisition, and establish the legal mechanism for industry security and industry policy are effective legal measures to solve the issue of industry security in foreign capital merger and acquisition.
Highlights
One of the remarkable symbols of economic globalization is international investment
The issue that foreign investors’ merger and acquisition of domestic enterprises influences industry security, national economic security and even national security, which is triggered by Coca Cola’s merger and acquisition of Huiyuan and Carlyle’s merger and acquisition of XCMG, has attracted extensive attentions, forcing China to re-think about foreign capital merger and acquisition
Many examples have shown that merger and acquisition, foreign capital usually ceases the operation of domestic enterprises so as to wipe out competitors and to obtain domestic market-share or transforms merged and acquired enterprises into pure processing plants in order to keep them far away from intellectual property rights and core technologies
Summary
The industry security refers to the fact that in international economic competition, the industries of a country can develop healthily, soundly, and sequentially, and maintain leading positions or can be in advantageous statuses, to the independence of domestic industries from foreign countries in aspects such as knowledge and technologies, and to the realization of support functions for the development of national economy (Xie Ying, 2005, p.36). This definition includes the following key points: Firstly, industry security mainly copes with key industries instead of all industries of a country. What is the most important is to necessarily understand the importance of industry security from the strategic height of national interests, and the main influences generated by foreign investors' merging and acquiring enterprises, which involve industry security, include: Selling state-owned assets at an extremely low price, allowing foreign capital to merger and acquire leading enterprises of advantageous industries in China, which necessarily reduces the competitiveness of China enterprises, and allowing foreign capital to control the lifeline of key equipment manufacturing industry of China, which threatens the national economic security and national security
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