China may begin to have a global say in corporate regulation
The latest (potential) development in the Microsoft/Yahoo takeover bid is one that I hadn’t thought of or expected at all. China wants to increase its role in regulating international companies, and it might try out this power on Microsoft if the takeover deal goes through. The International Herald Tribune ran an article on it:
China law could impede Microsoft deal for Yahoo
http://www.iht.com/articles/2008/03/28/technology/28yahoo.php
Formally enacted by the National People’s Congress last year, the measure gives Chinese regulators authority to examine foreign mergers when they involve acquisitions of Chinese companies or foreign businesses investing in Chinese companies’ operations. Beijing could also consider national security issues, according to a report by the official news agency Xinhua.
This is interesting to see because it marks a new stage in China’s coming-of-age as a world economic power. The power of its billion-person market will allow it to have an increasing say in how business is done. It’s too early to tell how they will use that power, though. Such international decisions will be far more visible and open to criticism than the kind of internal economic decisions that China is used to dealing with, I would think.
