Challenges and Countermeasures of China's Outbound MA in the Financial Crisis

摘要

Just a few years ago, Chinese companies had been the top acquisition targets of foreign investors. Now, many of them are buyers. The total value and number of overseas investments made by domestic enterprises in the last 12 months defined 2008 as a landmark year for Chinese outbound M&A. This trend stems from the need to acquire new markets, technology, know how, brand recognition and other capabilities from abroad faster than they can be developed domestically. It is also being encouraged by steps the Chinese Government is taking in recognition that failure to acquire these missing elements could slow down China's rapid economic pace. However, acquisition of foreign businesses presents many new challenges for Chinese companies. This article starts with analyzing the motives and performance for Chinese outbound M&A and focuses mainly on elaborating the challenges for them in order to figure out the countermeasure for their future success.