CN -- LARRY ROMANOFF: 威胁合并

 

Threatening Mergers

威胁合并

 

 By LARRY ROMANOFF – September 24, 2020

作者拉里·罗曼诺夫——2020年9月24日

CHINESE   ENGLISH

中文   英语

 

In joining the WTO, China made substantial commitments to relax the restrictions on foreign investment, on ownership of assets and the transfer of technology. Coupled with increasingly open capital markets, these acquisitions created convenient conditions for the expansion of foreign control of many economic sectors, with takeovers increasing almost exponentially, led by US and European multinationals. It was originally hoped that the large influx of foreign corporations would inject vitality into the development of China's economy, and it may have done so, but at the same time, has also brought serious negative effects. In particular, foreign Joint Ventures evolved from initial cooperative efforts to a situation where an increasing number of industries and industry segments were dominated by a few foreign MNCs, forming virtual monopolies in some cases.

 在加入WTO时，中国做出了放松对外国投资、资产所有权和技术转让限制的实质性承诺。再加上资本市场日益开放，这些收购为扩大外国对许多经济领域的控制创造了便利条件，收购几乎呈指数级增长，由美国和欧洲跨国公司牵头。人们原本希望外国公司的大量涌入能为中国经济的发展注入活力，虽然这样做了，但同时也带来了严重的负面影响。特别是，外国合资企业从最初的合作发展到了越来越多的行业和行业领域由少数外国跨国公司主导的局面，在某些情况下形成了虚拟垄断。

Threatening Mergers -- September 24, 2020

 

 

 

Threatening Mergers

 

 By LARRYROMANOFF – September 24, 2020

 

In joining the WTO, China made substantial commitments to relax the restrictions on foreign investment, on ownership of assets and the transfer of technology. Coupled with increasingly open capital markets, these acquisitions created convenient conditions for the expansion of foreign control of many economic sectors, with takeovers increasing almost exponentially, led by US and European multinationals. It was originally hoped that the large influx of foreign corporations would inject vitality into the development of China's economy, and it may have done so, but at the same time, has also brought serious negative effects. In particular, foreign Joint Ventures evolved from initial cooperative efforts to a situation where an increasing number of industries and industry segments were dominated by a few foreign MNCs, forming virtual monopolies in some cases.

 

These foreign-funded enterprises now number about 450,000, and have grown at a double-digit rate, often controlling a market share of 30% or more, accounting for more than half of China's total exports and 20% of its tax revenue. In some developed regions, these foreign enterprises once accounted for more than 40% of all assets, 35% of all added value creation, and a large number of employees. The number of foreign takeovers and acquisitions in China has been growing at a rate of 50% or 60% in the recent few years. In 2010, China recorded 1,800 mergers and acquisitions with a value of $82 billion. Among other effects, these developments greatly increased the cost of commercial development land in smaller centers like Suzhou and Kunshan, and other red lights were flashing as well. And according to a World Bank study of some 12,500 foreign firms in more than 100 Chinese cities, their return on investment was well over 20% - much higher than that of domestic firms - but with a much lower average tax burden. In a real sense, these firms were being paid to take over the country's commerce.