Robert Ping Yu, Masaki Yamamoto, and Makoto Ideno
PART 1: CHINA
PART 1 LEARNING OBJECTIVES—IN THIS PART, YOU WILL LEARN:
- Current trends of cross-border M&A in China
- Common pitfalls when entering the Chinese market
- Critical issues and approaches that could make or break an M&A deal
- China outbound M&A trends and issues
PART 1 SUMMARY
Part 1 elaborates on trends and issues involving both inbound investment into China by foreign companies and China outbound investment. It describes the motivations behind the inbound and outbound investments, and points out the critical issues that have a significant impact on the success or failure of an M&A project. It also provides some approaches to deal with the issues.
OVERVIEW OF M&A TRENDS IN CHINA
Since the market reform was initiated to shift from a centrally planned to a market-based economy in 1978, China has experienced rapid economic and social development. Joining the World Trade Organization in December 2001, China has shown accelerated growth and progress. ...