Opportunities in M&A Transactions in China's Emerging Private Sector

October 02, 2001 | BY

clpstaff &clp articles

China's economic liberalization is creating new opportunities for mergers and acquisitions among the emerging class of new Chinese entrepreneurs (NCEs).…

China's economic liberalization is creating new opportunities for mergers and acquisitions among the emerging class of new Chinese entrepreneurs (NCEs). These entrepreneurs have developed their businesses only in the last 10 years and are seeking capital to finance expansion and coverage in China beyond their base. They offer the drive and commercial acumen that make them potential partners or acquisition targets for Western firms.

The Asian Wall Street Journal reported recently that the private enterprise culture in China is "taking off"; the paper reported that more than 800 new private companies are being incorporated in China every day. At the same time, the government is justifiably proud of the fact that today there are 180,000 foreign investment enterprises (FIEs) that have created over 20 million jobs and contribute more than 20% of the value-added in the industrial sector of the economy.

The Rise of Private Chinese Enterprises

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