ABSTRACT
The effects on technologies of the host country brought about by cross-border mergers and acquisitions are in direct proportion to the technology gap between the two sides involved in the mergers and acquisitions, to the degree of openness of the host country, and also to the technical foundation of the host country. In China, the effects of implementing the “using the market to exchange technology” strategy are not ideal. China's technology level will be substantially promoted by relaxing the restrictions on mergers and acquisitions of TNCs.
