“CROSS-BORDER MERGERS AND ACQUISITIONS IN CHINA AND INDIA: A STUDY OF REGULATORY AND MARKET DYNAMICS”
AUTHOR -“ANSHIKA CHAUDHARY* & PROF. (DR.) ARVIND P BHANU**
* STUDENT AT AMITY LAW SCHOOL, AMITY UNIVERSITY, NOIDA, UTTAR PRADESH. EMAIL – ANSHIKACHA@GMAIL.COM
** PROFESSOR OF LAW, RESEARCH AND ADDL. DIRECTOR/JT. HOI, AMITY LAW SCHOOL, AMITY UNIVERSITY, NOIDA”
BEST CITATION – ANSHIKA CHAUDHARY & PROF. (DR.) ARVIND P BHANU, CROSS-BORDER MERGERS AND ACQUISITIONS IN CHINA AND INDIA: A STUDY OF REGULATORY AND MARKET DYNAMICS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (8) OF 2025, PG. 839-846, APIS – 3920 – 0001 & ISSN – 2583-2344
Abstract
In light of the ability to promote economic growth, market consolidation and technical improvement, cross-border mergers and acquisitions (M&A) have become essential instruments for business expansion. Due to the growing economies and rising foreign direct investment (FDI), nations like China and India have seen a spike in cross-border M&A activity as globalisation picks up speed. Despite the fact that both countries are key participants in international M&A, there are notable differences between their regulatory environments, economic policies and market dynamics. Historically, China has upheld a state-controlled system in which foreign investment is heavily regulated by the government. Foreign investors frequently encounter obstacles in vital industries due to stringent regulatory clearances, sectoral limitations and protectionist policies. However, Chinese corporations have been able to increase their worldwide footprint, especially in the industrial, technology and energy sectors, thanks to the country’s outward M&A policy, which is led by state-backed enterprises.
In contrast, India has taken a more liberal stance, especially following the 1991 economic reforms. A more open environment is offered to foreign acquirers by the regulatory framework, which includes the “Companies Act of 1956”, SEBI rules, and the “Competition Act of 2002”. Additionally, Indian companies have actively moved outside, purchasing assets in the consumer goods, pharmaceutical, and technology industries. The benefits and drawbacks of both models are examined in this comparative study of the commercial, legal, and economic aspects of cross-border M&A in China and India. Policymakers and companies may create plans to increase investment prospects, lessen regulatory obstacles, and boost market competitiveness in both economies by being aware of these distinctions.
Keywords
Cross-Border Mergers and Acquisitions, Foreign Direct Investment (FDI), Regulatory Framework, Economic Liberalization, China-India Comparison, Corporate Expansion