The issue of foreign mergers and acquisitions has been under the spotlight since last year. Statistics show that the number of cases involving foreign mergers and acquisitions has increased as many as ten times during the last few years.

Some say that more and more Chinese enterprises are facing the possibility of a foreign monopoly in their sector.

Li Zhiqun, from the Ministry of Commerce, says China will strengthen regulations of foreign mergers and acquisitions.

"Mergers and acquisitions have given us an opportunity in the international transfer of industries as well as better use of foreign funds. But many problems still remain unclear. This issue should be handled with caution. As a result, we need to step up legislation, encourage fair competition, prevent monopolies and vicious mergers, and safeguard the economic security of our country."

In 2006, a regulation was issued on the takeover of domestic enterprises by foreign investors. Meanwhile, China says it will quicken its pace in drafting relevant regulations aiming to encourage foreign investment in high-tech fields, advanced manufacturing, modern agriculture, and environmental protection.

Li Zhiqun adds that China is also trying to draft an anti-monopoly law, while preparing to establish a special institution to review major cases of foreign mergers and acquisitions.

Meanwhile, experts say the government should be cautious in deciding whether foreign mergers will actually result in monopolies. Wu Hanhong is an expert on the anti-monopoly law.

"The economic security of our country should be the top priority. When we make sure that our economic security is not affected, we should treat foreign mergers and acquisitions equally."

Wu Hanhong also suggests that relevant departments restrict foreign mergers in sectors crucial to the country's economy and that big mergers undergo examinations.

Editor: Yan