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BIZCHINA / Center
Overseas M&As in favor of SOEs: Ministry
By Shangguan Zhoudong (chinadaily.com.cn)
Updated: 2007-07-16 14:53
According to a senior commerce official, overseas investment in China
through mergers and acquisitions (M&As) is in favor of State owned
enterprises' reshuffle and Chinese economic development, the Beijing
Morning Post reported today.
Liao Xiaoqi, vice commerce minister, said at the East Asia Investment
Forum held in Beijing from July 14 to 15 that multinationals' M&As in
China are still in their infancy, although M&As have been a major
investment means taken by multinationals worldwide.
Liao also said that the Chinese government is to strengthen management on
M&As.
China's foreign direct investment consists largely of greenfield
investment, according to Liao.
M&As have more advantages than greenfield investment, which refers to
construction of new production facilities, requiring too much land, Liao
said.
According to Liao, overseas enterprises invested less than US$5 billion
in China through M&As in 2006, accounting for only 2.5 percent of total
overseas investment in China.
However, in 2005 global transnational M&As accounted for a total trade
volume of more than US$710 billion, up nearly 100 percent from 2004.
(For more biz stories, please visit Industry Updates)
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