Cross-Border M&A Performance of Chinese Enterprises in the Context of the Belt and Road Initiative

The cross-border mergers and acquisitions (M&A) have long been a worthy measure for Chinese enterprises to enhance their capabilities on their path to becoming globalized. However, the various motives adopted by these enterprises towards cross-border M&As, tend to generate diverse effects on their performance. Therefore, an in-depth analysis of the cross-border M&A performance of the participant companies pertaining to their particular motives can result in devising rationalized and science-oriented M&A activities. Being cognizant of the constant reforms in regulatory policies and market conditions has conditioned the Chinese enterprises to have a more realistic approach in their cross-border M&A activities. The Belt and Road Initiative demonstrates incredible prospective for cross-border M&As as well as investments. Meanwhile, as transnational trading stays invigorated by an ever more globalized economy, these M&A activities function as powerful catalysts for the strong development of China’s national economy. However, the Sino-American trade dispute has escalated into a full-blown trade war since July 6, 2018, and has severely compromised the cross-border M&A campaigns and globalization strategies practiced by Chinese enterprises. Hence, a comprehensive analysis of the cross-border M&A performance projected by various Chinese enterprises working with different motives can contribute to the determination of suitable M&A strategies for companies, under the ongoing economic conflict.