Date of publication
18 April 2006
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Recent developments in China's policies towards cross-border mergers and acquisitions (M&A), December 2006
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Open policies towards mergers and acquisitions
China has become one of the world's leading destinations for foreign direct investment (FDI). However, while cross-border mergers and acquisitions (M&A) have become the dominant form of global FDI flows, they remain a relatively small part of FDI flows into China. Cross-border M&A can play an important part in the restructuring of state-owned industries, especially in China's old industrial heartland in the North East. The Chinese government has enacted legislation to open the economy to cross-border M&A but the regulatory framework could be more open and transparent. In reviewing developments since 2003, the Investment Policy review of China 2006 evaluates the progress made in developing an effective institutional framework for cross-border M&A in China, takes stock of remaining obstacles, and offers policy options to address them.