Nowadays, foreign capital enter China in a variety of ways, such as foreign-owned、joint ventures、mergers and acquisitions. This created about 1/3 of China''s industrial output, generated about 1/5 of the national revenues and employed more than 20 million employees. The National Bureau of Statistics of China has always included foreign-funded enterprises as a part of the national economic statistics, so they have been deeply rooted into the Chinese economy. The technology which is brought by foreign enterprises accounted for about 50% of China''s technology imports whereas the exports of foreign-funded enterprises accounted for about 60% of our total exports, of which high-tech products export of foreign-funded enterprises is 88 percent realized. It is clear that foreign-funded enterprises have greatly strengthened our country in the world competitiveness as the most dynamic business group. Obviously, the input of foreign investment exerts good influence. Generally speaking, the advantage prevails the shortcoming. Now, the key point is to use the law to help us draw on the advantages and avoid disadvantages.

　　3. An Analysis on Foreign M&A in China From the Perspective of Anti-monopoly Law

　　First of all, let us look at the Chinese scholars'' viewpoints or attitudes regarding the ruling of the Anti-monopoly Bureau of the Ministry of Commerce. 1） "Completely Affirmative Theory", represented by Professor Xiaoye Wang of Chinese Academy of Social Sciences; 2） "Basically Negation Theory", represented by Professor Jichun Shi of Chinese People''s University; 3） "Noncommittal Theory", which is not to make a final evaluation before the specific details and reasons become clear. As mentioned before, the Huiyuan case should be left to scholars to solve the conflict, but the scholars and experts debated first.

　　3.1 An Analysis on the Three Reasons of the Anti-monopoly Bureau''s Ruling

　　Actually, the three reasons of Anti-monopoly Bureau''s ruling are "two conduction effects" and "one squeeze effect" - a conduction of market dominant position from carbonated drinks to juice drinks market and a conduction from Coca-cola''s brand, and the small and medium-sized enterprises will be imposed on a squeeze effect.

　　In terms of the two conduction effects, both the Ministry of Commerce and Professor Xiaoye Wang considered that, carbonated drinks and fruit drinks are highly substitutable. Coca-cola was already in a dominant position in China''s carbonated drinks market. It is most likely that once it comes into the fruit juice market, it will soon achieve a dominant position. However, Professor Jichun Shi held that fruit juice market is a fully competitive and very classified market. Huiyuan only makes up 40% of the so-called high-concentration and middle-concentration juice market and less than 10% in the whole juice market. There are no customary industry standards and legal barriers in the juice market, so coca-cola can not restrict market entry.

　　I think the conduction effect may exist, but the justification given by the Ministry of Commerce is ill-founded and lack persuasion.

　　As for the squeeze effect, the Ministry of Commerce and Professor Xiaoye Wang thought, if Coca-cola acquires Huiyuan, it is possible that Coca-cola will do package deal or bundle sales with its dominant position in carbonated drinks market, resulting in squeezing Huiyuan''s major competitors （most of which are small and medium-sized enterprises） out of the juice market. Professor Xiaoye Wang considered although the purpose of "Anti-monopoly Law" is not to protect small and medium-sized enterprises, these enterprises should not be disregarded. If they are not engaged in the market competition, the enterprise monopoly will enhance.

　　However, scholars holding the "Negation Theory" considered, it is possible that this merger can bring opportunity to small and medium-sized enterprises. The current juice market is a low-level repetitive competition, M&A can enable an upgrade of China''s juice market, a more standardized competition, and a more reasonable competition structure. The industrial chain built around Coca-cola will be superior to the one around Huiyuan. All of these provide opportunities to small and medium-sized enterprises.