China’s Outbound M&A goals in the Manufacturing Sector

Over the last decade, China has primarily used M&A as a means to acquire strategically important resources. There are now signs of M&A activities entering into another phrase, with Chinese companies increasingly active in M&A in the manufacturing sector. By reviewing literatures, analyzing data from past 10 years, and through interviews with people in the government, business world, and intermediaries, this project aimed to understand the drivers and obstacles behind this trend and to predict how it is likely to develop over time.

Furthermore, the project's goal was to understand the drivers behind this trend and to take a view on how it is likely to develop over time:

1. Why and how are certain sectors or countries preferred? How are these trends likely to develop?

2. Who is setting the agenda with regard to outward investment inside China? How is policy developed and implemented?

3. What are the barriers to Chinese companies successfully concluding transactions and how effective are the companies in overcoming them?

4. To what extent is this outward investment trend led by the state or by the private sector?

5. How are these trends likely to develop over the next five to ten years?