日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

Global EditionASIA 中文雙語Fran?ais
Africa

Different analysis methods cause friction

By Michele Geraci | China Daily Africa | Updated: 2017-11-03 09:17
Share
Share - WeChat

But there's a step-by-step way to ease conflicting views over mergers and acquisitions that could make everyone happy

Recent trade friction between China and Europe has highlighted their different approaches to addressing such issues and, in my view, this stems from the latter's inability to properly analyze China's economy and assess its demands.

In statistics, two main methodologies are used to analyze data: One is cross-sectional analysis, the other is time-series analysis. The two methods differ in that cross-sectional analysis compares the current value of a certain variable with the current status of the same variable in other countries, while time-series analysis focuses more on comparing the current value of a variable with the value of the same variable in the past.

In other words, cross-sectional analysis is a static comparison of how things are today, while time-series analysis reveals how things have changed over time.

When analyzing China's economy, a similar dilemma occurs: Western analysts tend to take a cross-sectional approach and compare China today with, say, Europe as it is today. China appears late on many metrics of economic development, such as the openness of its market, the development of its financial system and so on. The result is that Western policymakers often push China to accelerate reforms and offer reciprocity.

However, Chinese analysts tend to be time-series analysts and compare China today with where China itself stood one or two decades ago. Clearly, when looking through the lens of time, China's development in many areas has no equivalent in history. More than 800 million people have been lifted out of poverty since the reform and opening-up policy was launched in 1978. People may argue over the exact figures, but not the fact that China has taken giant steps.

However, the two approaches lead to entirely different conclusions and totally different policy recommendations: Western analysts urge China to implement reforms and complain when this does not happen fast enough. Chinese analysts respond that China is already moving forward very quickly, indeed, faster than the West and that the gap is narrowing.

What is, then, the correct way to solve this dilemma?

The European Union is implementing new policies aimed at more carefully screening cross-border mergers and acquisitions carried out by non-EU investors. The policy aims at scrutinizing both targets and buyers.

On the target side, it will list a number of strategic industrial sectors and potential acquisition targets that will receive more severe scrutiny before being given the green light. On the acquirer side, more attention will be given to who the ultimate shareholders are. Should there be some foreign government involvement, the green light for the acquisition may be harder to come by.

There has been no specific mention of China, since the policy is aimed at "any" acquisition by a foreign entity, but there is the worry that, given the large number of Chinese State-owned enterprises, the flow of M&As originating in China may encounter more resistance than before.

One of the main worries in European circles is that foreign companies may take advantage of the current economic crisis in Europe to sweep away all the best assets for a price that, while it looks reasonable today, may undervalue the future prospects of the target companies, especially under the new, stronger, foreign shareholder.

European politicians would be more relaxed about selling their companies if there was some assurance that the new owner, for example a Chinese company, were committed to bringing new capital into the company, thus increasing the production level, creating new jobs for the local population and granting access to the Chinese market.

There is a way to achieve that, and it is a multistep acquisition process. In step one, a Chinese buyer would only acquire a minority stake, say 30 percent, of the target company. Over the following few years, the new owner should have evidence that the three objectives mentioned above have actually been met, and only then be allowed to increase its equity stake, little by little, to reach full ownership.

This would satisfy time-series and cross-sectional analysis at the same time: The European target gets some money now, and the Chinese buyer gets ownership over time. Everyone should be happy.

The author is head of the China Economic Policy Program and assistant professor of finance at Nottingham University Business School, China. The views do not necessarily reflect those of China Daily.

(China Daily Africa Weekly 11/03/2017 page11)

Today's Top News

Editor's picks

Most Viewed

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 免费国产精品视频在线 | 在线中文天堂 | 亚洲日韩精品AV无码富二代 | av看片网站| 贺鹏个人资料 | 亚洲区视频 | www.久久99| 久久一级 | 午夜精品久久久久久久99热浪潮 | 亚洲已满18点击进入在线观看 | 亚洲国产日韩欧美高清片a 高清视频在线播放 | 日本v片做爰免费视频网站 国产精品v欧美精品v日韩精品 | 国产高清无专砖区2021 | 国产精品一级香蕉一区 | 日本高清在线中文字幕网 | 久草在线精品ac | 欧美成在线播放 | 在线播放日本爽快片 | 免费看国产片 | 欧美日日射 | 日韩欧美精品综合一区二区三区 | 国产精品视频在线观看 | 欧美h视频在线观看 | 性夜影院爽黄e爽在线观看 苏晓晖个人简介军衔 | 国产精品成人无码A片免费网址 | 亚洲成人精品 | 96精品免费视频大全 | 亚洲精品午夜一区二区 | 午夜激情视频在线 | 久热中文字幕在线 | 香港一级毛片在线播放 | 亚洲成人国产综合 | 中文在线一区二区 | 亚洲综合日韩 | 国产精品1区2区3区 二区国产 | 五月六月婷婷 | 成人午夜视频在线播放 | 五月婷婷综合在线视频 | 亚洲欧美日韩另类精品一区二区三区 | 免费国产一区二区在免费观看 | 一区二区免费在线观看 |