China's enterprises have entered into the mergers and acquisitions stage of the "Go Global" strategy.

Over the past two years, there has been significant increase in terms of the acquisition of German companies by the Chinese enterprises.

ANBOUND’s scholars, however, are of the view that the mergers and acquisitions alone are not sufficient to resolve the lack of innovative capacity within a nation or an industry system.

Looking from the perspective of market system, the innovation capacity in China’s market cannot be bought with money, for innovation is the outcome of an environment and a system, to achieve this goal, China needs more reforms.

Mergers and acquisition cannot be equated with innovative capacity.