China pledges better M&A environment

China on Monday made it easier for its companies to carry out cross-border mergers and acquisitions, senior officials said.

Pledges were made to increase multinational companies' access to government initiatives to ease overcapacity and improve China's industrial structure.

The State Council, China's Cabinet, issued a notice to cut administration and barriers for mergers and reorganizations. It will also improve services related to finance, tax, land use and employee relocation while helping to ease overcapacity and enhancing the industrial structure.

"China encourages cross-border mergers and acquisitions for enterprises to allocate resources in global markets and will improve related policies," the notice said.

China welcomes the participation of overseas companies in the government's move to ease overcapacity, Su Bo, vice minister of Industry and Information Technology told a forum on Monday.

"China's overcapacity provides new scope for foreign companies to deepen their investment in China," Su said.

"We welcome their engagement and will loosen restrictions on market access. We expect cooperation between foreign and local companies to upgrade products while supporting foreign companies' moves to establish research and development centers in China. We will forge a long-term strategy for opening-up and development," he said.

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