Jump to ContentJump to Main Navigation
Chinese Antitrust ExceptionalismHow The Rise of China Challenges Global Regulation$
Users without a subscription are not able to see the full content.

Angela Huyue Zhang

Print publication date: 2021

Print ISBN-13: 9780198826569

Published to Oxford Scholarship Online: July 2021

DOI: 10.1093/oso/9780198826569.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 04 December 2021

The EU Merger Probe into China, Inc.

The EU Merger Probe into China, Inc.

Chapter:
(p.119) 3 The EU Merger Probe into China, Inc.
Source:
Chinese Antitrust Exceptionalism
Author(s):

Angela Huyue Zhang

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198826569.003.0004

This chapter investigates the EU’s dilemma when applying the existing merger review framework to scrutinize acquisitions by Chinese companies. The EU merger review only acts on acquisitions of controlling interest. This means that Chinese state-owned enterprises (SOEs) can bypass the EU antitrust scrutiny by making minority acquisitions in Europe. However, minority shareholding in rivals can still create anticompetitive effects, as abundant economic literature has demonstrated. In fact, there is a blurred line between SOEs and privately owned enterprises in China, and a Chinese SOE could escape antitrust scrutiny entirely by employing a non-controlling subsidiary as a vehicle to acquire European assets. Given this regulatory dilemma, the chapter argues that a thoughtful response to acquisitions by Chinese SOEs necessitates a shift in regulatory focus from defining what constitutes an undertaking to understanding the effects of Chinese state ownership. It also cautions against deploying competition policy too broadly when reviewing Chinese SOE acquisitions. As the EU’s existing antitrust regulatory framework is not fully equipped to handle Chinese investments, it is not surprising to see that both the European Union and some of its Member States are tightening their foreign investment review to scrutinize Chinese takeovers.

Keywords:   Chinese companies, EU merger review, Chinese state-owned enterprises, EU antitrust regulation, minority acquisitions, minority shareholding, Chinese state ownership, competition policy, Chinese investments, Chinese takeovers

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .