Since the late 1980s of the 20th century, transnational merger and acquisition has become a world trend and major FDI means of transnational corporations. With the continuous increase competition among transnational corporations, the market of China, which has great potentialities and upgraded market levels, has become the main areas of transnational corporations.
Since 1990s of the 20th century, the behavior of foreign capital’s Merger and Acquisition has been a new aspect of transnational corporations’ activity in China. Especially after the accession to the World Trade Organization, China’s economy has become increasingly integrated into the world market, which accelerates the pace of mergers and acquisitions of transnational corporations in China. However, as China is now in a transition period, there are many problems in transnational mergers and acquisitions. In view to this, first this paper analyzes from the angle of transnational corporations Merger and Acquisition situation in China, and then this paper analyzes the main problems in the process of acquisition and further analysis of the root causes of these problems. Finally, we propose to address the problems of transnational mergers and acquisitions for guidance and how to make use of them to help promote China's economic development.