Beijing reassures foreign investors on M&As

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BEIJING, Aug 2 (CEIS): Chinese officials have reassured overseas investors that the country still welcomes foreign investment in the form of mergers and acquisitions (M&As), amid domestic worries that they may threaten national economic security.
The message was sent by a string of positive comments on foreign M&As made by Chinese officials.
Chinese businesses should neither demonise nor make light of foreign mergers and acquisitions in a globalising economy, the People's Daily quoted Liao Xiaoqi, vice minister of commerce (MoC), as saying Tuesday.
Backed foreign M&As at an investment forum in Beijing two weeks ago, Liao said, "Foreign investment in the form of mergers and acquisitions could benefit the restructuring of state-owned enterprises as well as the national economy."
Liao said the government would like to see the healthy development of M&As under proper regulation and management.
Minister of Commerce Bo Xilai seemed to be optimistic about the foreign M&As, saying they could bring new opportunities to Chinese enterprises and China was just getting started in this field.
The MoC statistics showed that foreign mergers and acquisitions account for only 2.5 per cent of all forms of foreign direct investment in China, while the proportion averaged 80 per cent worldwide.