China's New Regulation on Foreign M&A: Green Light or Red Flag?
University of New South Wales Law Journal, Vol. 13, No. 2, pp. 30-36, 2007
11 Pages Posted: 24 Jul 2008
Date Written: July 23, 2008
There has been an ongoing surge of cross-border M&A activity in China since its WTO accession. This has prompted the Chinese government to reform its legal regime by promulgating the Provisions on the Takeover of Domestic Enterprises by Foreign Investors on 8 August 2006 (2006 Foreign M&A Regulation). This paper considers the central features of this newly introduced 2006 Regulation and then analyses the factors responsible for its adoption. It also examines the possible implications it will have for foreign M&A transactions in China, which includes a discussion on the problems with the enforcement of this regulation and a proposal for improvement.
Keywords: M&A, foreign investment, China
JEL Classification: K22, K33
Suggested Citation: Suggested Citation