Reflection Xugong case: The real danger is that management logic confusion

Reflection Xugong case: The real danger is that management logic confusion

Recently, a media report, the SAC has approved Carlyle Xugong new program, which is awaiting the Ministry of Commerce and the final approval of the securities regulatory authorities. After a year and a month of waiting, the Carlyle acquisition of Xuzhou Construction is expected to enter "ending" stage.

Recalling a decade ago on the ocean of beer, foreign products on the "invasion" of the discussion, we can find the market after a 10-year process, our discussion in terms of perception or reasoning, there were no significant progress?? ? also angered, and the "rise to the relevant departments attach great importance," and even language are similar terms together. Although there are numerous cases in the former, our minds still not very clear. The reason is that we always judge similar incidents in the incident when a number of factors other than interference, so they could not understand the "business is business," the essence of such a market, in essence, can not understand or attract investment capital constraints and market selection, market competition results.

Foreign direct investment in China over 20 years, basically a joint venture, cooperation, sole and other new investments. But the last two years, with the upgrading of the level of domestic industry, multinational companies began in the domestic heavy industry, basic materials, consumer goods major acquisition, production and other fields. This change is becoming intense and caught up in the discussion of this background.

In fact, the total global transnational direct investment, mergers and acquisitions for the investment to more than 80% can be said that the mainstream of international investment. According to an authoritative department statistics, China's current share of M & A accounting for foreign investment up to no more than 5%, even in the manufacturing sector appears to deal in full swing, the proportion of its M & A FDI in China has less than one-tenth of the total. Therefore, only intensified cross-border mergers and acquisitions in the future, we are not immune to a tendency in any case.

So how to respond? Back in March, Li Deshui current term of office in two sessions on the call for "national economic security", the newspaper had published "controversy behind M & A: The real danger is that management logic confusion" article. The article explicitly expressed: "The real danger is not that we are nascent enterprises by foreign acquisitions, but our management logic confusion, interest groups and was distorted."

The paper made analysis on the debate: The reason why we are caught up in the debate, because we manage a very "stupid", not a set of standard access and control mechanisms. In addition, we relate to management of foreign investment in the sector no less than 10, and specifically who should have the final say probably no one right out. This leads to our view of monopoly is not a healthy development from the industry perspective, but from various government departments on the strength of resource control in mind. At this stage in our policy on legal and economic security has not yet clearly defined circumstances, a complete, if there is damage to our economic security cases, apart from shouting "wolf," how can I do?

After September the Ministry of Commerce after the implementation of the new regulatory M & A last week, the National Development and Reform Commission issued the "foreign investment" Eleventh Five-Year "plan", in the first five-year plan on the use of foreign investment in, the explicit expression "establish a more fair and perfect environment for foreign investment", to dynamically adjust the "Catalogue for the Guidance of Foreign Investment Industries", and as soon as possible "anti-monopoly law." We believe that this gradually hit the essence of the problem.

Xugong acquisition in the final before the dust settles, we really do not want to see because of the incident in for reasons other than regeneration of ups and downs. History proves that every argument can only go the way of our open firmer, as has been warning that we should take some less roundabout route.

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