'Made in China 2025' and China's cross-border strategic M&As in OECD countries. Issue 2 (2nd April 2020)

• Record Type: Journal Article
• Authors: Lin, Yue
• Is Part Of: Journal of Chinese economic and business studies. Volume 18:Issue 2(2020)
• Page Start: 91
• Page End: 114
• Publication Date: 2020-04-02
• Subjects: China -- cross-border M&A -- troika -- made in China 2025; China -- Economic conditions -- Periodicals; 330.951
• DOI: 10.1080/14765284.2020.1759360
• Languages: English
• ISSNs: 1476-5284

Abstract

ABSTRACT: This article focuses on the highly debated 'Made in China 2025' program and its effects on Chinese M&As in OECD countries. Difference-in-differences as well as difference-in-difference-in-differences statistical techniques are employed to calculate to what extent 'Made in China 2025' has shaped both sector composition and location choice of Chinese M&As in the OECD, and to estimate effects and limits of national policies on cross-border M&As. Based on statistical results we can argue that 'Made in China 2025' has induced a new 'troika' model, of which the significance is moderated by firm-specific characteristics, such as ownership structure, and the firm's home country embeddedness level. However, while we observe location diversification of Chinese M&As in the OECD at the aggregate level, hosting countries' FDI screening mechanisms have no significant impact on containing China's M&As that target more sensitive sectors.