How China Reset Its Global Acquisition Agenda The China company seems unstoppable in the growth of economy, that perception is understandable, because no other nation come close to matching the China economics since late 1970s. The changes have been so rapidly but the China company sometimes failure in the cross border mergers and acquisitions. In 2000, China government realized local companies would need to be globally competitive to survived and allow local companies to mak acquisition. In 2006 the value of China M&A raise 11 times from 2003.
Almost all of the China early M&A pull out of or sell off their acquisitions. But China wasn’t paralyzed by failure, China raise from their failure because of their old traditional believe. That tradition says “if you get up one more time than you fall, you will make it through”, so China policy makers thought rationale for their global takeovers than thought about the brand or network which owned by the company that wants to be taken over by China companies.Now China’s companies no longer use their overseas to takeovers to gain market share aboard, they deploy them to strengthened their positions in the Chinese market, like concern got mineral assets, technologies and R&D facilities. By failing spetaculary in the early, China’s takeover artist could well have discovered how to succed in the future.
China’s global M&A strategy has evolved rapidly in the 1990s when the government swapped access to China’s market for technologies from aboard, it mostly allowed state owned enterprise to buy small equity stakes in overseas energy companies and natural resources producers. The number of foreign acquisition increase from 40 in 2003 to 298 in 2008.
However, many over takeovers, especially those executed by China’s private sector groups, ended quickly and badly. To understand why things went wrong, we studied three big