Chinese cross-border M&As: framework, trends and recent restrictions

Abstract

Recently, many people may have heard that several EU economies are embracing tougher protectionist policies and reevaluating their inward investment policies. Besides, the Chinese government has introduced new restrictions on overseas investments as well. The aim of this work is trying to explain the main motivations that stand behind the proposal of limitations on Chinese M&As abroad. As mentioned above, these restrictions come both from some EU countries (Italy, Germany and France), and the Chinese government. This work is organized in three chapters. The first one is concentrated on the analysis of the different types of Foreing Direct Investment (FDI). More in detail, the focus is placed on the EU-China FDI flows, especially on Chinese M&As into the EU. Then, a detailed explanation of the motivations driving Chinese outbound M&As, the main sectors and main recipients of these investments is provided. The last part of the chapter deals with the explanation of the acquisition process. In the second chapter the focus is placed on the EU restrictions on Chinese M&As: some examples of challenging M&As in Germany and Italy are presented. The last part of this chapter deals with the analysis of the Proposal of establishing a framework for screening of FDI into the EU. In the third chapter the attention is placed on the Chinese side, in particular, the analysis of the new set of Guidelines on overseas investment by Chinese companies released by the State Council of China.