Merger control in globalization : China's choice

Abstract

With the development of international trade and investment, the past decade saw the surge of cross-border mergers and acquisitions. More and more countries have established their own merger control systems in order to impose regulations on mergers and acquisitions that have an anti-competitive effect, e.g., facilitating collusion or leading to the creation or extension of dominant market position. China’s merger control system is still in its incipiency. The vagueness of the future of China’s merger legislation and discriminatory treatment against foreign investors will not facilitate, but rather hinder the flow of foreign investment into domestic market. What goal (or goals) will the Chinese policy makers choose to “frame a coherent body of substantive rules”? And which model of institution-building will be suitable to Chinese economic development, political regimes, and cultural characteristics? This author will, after comparative studies of other jurisdictions and the international trend, give her own proposals for China’s future merger legislation.