Understanding Takeover Law in the Global Context

This chapter discusses the political economy of global takeover laws in light of the current power restructuring in the global economy brought about by events such as Brexit and the US-China trade war. It discusses how such changes may give rise to economic nationalism, and analyses how China will react in the global takeover market, in its M&A activities in the US and EU markets, in its regulatory responses to domestic takeover laws, and in its approaches to foreign financial intermediaries providing services in the Chinese market. Neoliberalism has provided the theoretical basis for the development of the takeover market and takeover governance but we may now begin to see more policy-based interventions. Digital economy, tech giants’ governance, and climate change initiatives are areas where policy considerations will shape the market and its governance. The US and EU have been influencing global takeover market and its governance. China will start to be a player—not only as a rule-taker in the global takeover market, but a rule-maker in its governance.