The Director of the Equipment Division of the National Development and Reform Commission’s Department of Industry, Huang Xin, confirmed to the reporter that the plan was under discussion. It was originally planned to be introduced in the first half of the year and it now seems impossible. “We certainly hope to hurry up, but now even the draft for consultation has not been issued. It must be determined by the General Office of the State Council. At the same time, opinions from the Ministry of Commerce, the Customs, and the Ministry of Finance must also be sought."
Antitrust, security
According to statistics, in 2004, more than 200 million yuan of foreign-funded, wholly-owned, and joint-venture companies in the equipment manufacturing industry accounted for more than one-third of their assets.
Yan Yongbin said that at present, foreign mergers and acquisitions on the equipment manufacturing industry are still in some cases, but the trend of development is terrifying.
Because foreign investment has already formed strategic considerations and arrangements, rather than short-term behavior; in addition, equipment manufacturing industry is not in the hands of the state as steel, electricity, and oil. Because of the premature dissolution of the Ministry of Machinery, machinery enterprises are decentralized. The right to kill and kill is in the hands of local governments. Some local governments do whatever they want to attract investment.
The existing restrictions are mainly based on two considerations: First, to prevent threats to national economic security, such as nuclear power equipment; Second, to anti-monopoly, although the excavator does not have national security, but if the foreign acquisition of Xugong, Xiagong and Sangong, Formed a monopoly in the industry.
Since the mid-1990s, foreign capital has changed its technological joint venture and has only invested in the cautious steps of small businesses. It has begun to make significant inroads. Especially after 2000, foreign capital has increasingly discovered the benefits of mergers and acquisitions. First, China has a huge market; Second, local governments attach A lot of favorable policy conditions.
Yan Yongbin believes that the surging foreign capital has brought negative effects, that is, the industry has lost the space for independent development. For example, he said that in the petrochemical industry, the foreign production of an additive is RMB 130,000 per ton, while China's own research and development is only RMB 0.67 million per ton; while another product and equipment China does not have the ability to produce, the foreign product is originally 300. - $4 million, which has now risen to $9 million.
“We should set a clear-cut attitude and set a strict restraint, because it is an international practice to implement administrative and legal interventions for the acquisition of domestic manufacturing by foreign capital,†said Yan.
However, opponents are of the opinion that such harsh restrictions will affect the image of China’s reform, opening up, and investment attraction.
“We cannot agree with this statement. The image of China’s reform and opening up is based on the protection of national interests. This is in line with the spirit of strengthening the control of state-owned capital by the 16th National Congress of the People’s Republic of China. It is also consistent with the international practice of protecting domestic industrial safety. Our CNOOC's purchase of oil companies in the United States has been subject to this review, said Yan.
He clearly expressed his opposition to the acquisition of Xugong by Carlyle. He disclosed that the merger is unlikely to be released within a short period of time. “Companies now have difficulties, but once they are sold, they are irreversible. There is always time to resolve these difficulties in their own hands; It will be beyond our control."
Regardless of the total assets, annual sales, or competitiveness in the product market of truck cranes, Xugong ranks among the top in China's machinery industry. It is known as the “first manufacturing†of the Chinese construction machinery industry. In October 2005, XCMG entered into an agreement with Kai Radar, which will acquire 85% of its shares for US$375 million. Once the news broke out, it immediately caused the industry's buzz.
Antitrust, security
According to statistics, in 2004, more than 200 million yuan of foreign-funded, wholly-owned, and joint-venture companies in the equipment manufacturing industry accounted for more than one-third of their assets.
Yan Yongbin said that at present, foreign mergers and acquisitions on the equipment manufacturing industry are still in some cases, but the trend of development is terrifying.
Because foreign investment has already formed strategic considerations and arrangements, rather than short-term behavior; in addition, equipment manufacturing industry is not in the hands of the state as steel, electricity, and oil. Because of the premature dissolution of the Ministry of Machinery, machinery enterprises are decentralized. The right to kill and kill is in the hands of local governments. Some local governments do whatever they want to attract investment.
The existing restrictions are mainly based on two considerations: First, to prevent threats to national economic security, such as nuclear power equipment; Second, to anti-monopoly, although the excavator does not have national security, but if the foreign acquisition of Xugong, Xiagong and Sangong, Formed a monopoly in the industry.
Since the mid-1990s, foreign capital has changed its technological joint venture and has only invested in the cautious steps of small businesses. It has begun to make significant inroads. Especially after 2000, foreign capital has increasingly discovered the benefits of mergers and acquisitions. First, China has a huge market; Second, local governments attach A lot of favorable policy conditions.
Yan Yongbin believes that the surging foreign capital has brought negative effects, that is, the industry has lost the space for independent development. For example, he said that in the petrochemical industry, the foreign production of an additive is RMB 130,000 per ton, while China's own research and development is only RMB 0.67 million per ton; while another product and equipment China does not have the ability to produce, the foreign product is originally 300. - $4 million, which has now risen to $9 million.
“We should set a clear-cut attitude and set a strict restraint, because it is an international practice to implement administrative and legal interventions for the acquisition of domestic manufacturing by foreign capital,†said Yan.
However, opponents are of the opinion that such harsh restrictions will affect the image of China’s reform, opening up, and investment attraction.
“We cannot agree with this statement. The image of China’s reform and opening up is based on the protection of national interests. This is in line with the spirit of strengthening the control of state-owned capital by the 16th National Congress of the People’s Republic of China. It is also consistent with the international practice of protecting domestic industrial safety. Our CNOOC's purchase of oil companies in the United States has been subject to this review, said Yan.
He clearly expressed his opposition to the acquisition of Xugong by Carlyle. He disclosed that the merger is unlikely to be released within a short period of time. “Companies now have difficulties, but once they are sold, they are irreversible. There is always time to resolve these difficulties in their own hands; It will be beyond our control."
Regardless of the total assets, annual sales, or competitiveness in the product market of truck cranes, Xugong ranks among the top in China's machinery industry. It is known as the “first manufacturing†of the Chinese construction machinery industry. In October 2005, XCMG entered into an agreement with Kai Radar, which will acquire 85% of its shares for US$375 million. Once the news broke out, it immediately caused the industry's buzz.
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