TY  - JOUR
AU  - Antkiewicz,Agata
AU  - Whalley,John
TI  - Recent Chinese Buyout Activity and the Implications for Global Architecture
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12072
PY  - 2006
Y2  - March 2006
UR  - http://www.nber.org/papers/w12072
L1  - http://www.nber.org/papers/w12072.pdf
N1  - Author contact info:
Agata Antkiewicz

John Whalley
Department of Economics
Social Science Centre
University of Western Ontario
London, ON N6A 5C2
CANADA
Tel: 519/661-3509
Fax: 519/661-3666
E-Mail: jwhalley@uwo.ca
AB  - We discuss recent cases of Chinese buyout activity in the OECD (especially in the US and the EU) in resource and manufacturing sectors. While most of the buyout attempts have been unsuccessful, they can serve as a catalyst for a wider discussion on the implications for global arrangements over cross border acquisitions. Three specific issues are discussed. The first is the subsidization of purchase raised in the OECD in response to the advancing of low- or no-interest loans by the Chinese Central Bank to companies investing abroad. The second is the transparency of entities involved in the buyout attempt. Most Chinese companies have close ties to the multiple levels of government and are not subject to the standard reporting requirements as required of OECD companies. The third involves national security concerns in the OECD and the possibility of acquiring sensitive technology by Chinese companies when they purchase companies abroad. These issues have not been addressed in the existing OECD/WTO investment policy initiatives and have yet to be discussed in the global fora.
ER  -