In recent years, overseas M&A are continuously undertakened by auto part enterprises in Zhejiang Province. Based on the statistics, the number of M&A has reached to over 10 cases. The certain events of overseas acquisitions suggest the internationalization of auto part enterprises in Zhejiang, which allows these enterprises to gain more technology and market shares for the good of their development. But to successfully integrate the resources of acquisition should be the most threatening challenge these enterprises encounter.

What is the driving force behind the continual M&As by Zhejiang enterprises? Insiders gave several responses to this question—the slowing-down of economic development, the far more harsh competition in the line, and the growing tendency of integration, etc. To realizing the transformation and upgrading of company structure and products, the most effective way is through merging and acquiring other firms, a way that as well allows the domestic enterprises in China to follow or even surpass the overseas enterprises. To be short, technology and market shares are the most effective driving force of M&As.

The risks existing during the M&As shall never be neglected. Great differentiation of management concept, culture and value between China and other nations would tarnish the benefit coming from M&As. Without careful evaluation of the possible risks occurred in not only the finance of the acquired enterprises, but also the regulations of local government, labor organization, etc, will these Chinese enterprises be the debt-cleaners with no other benefits.