This paper examines the impact and mechanism of ESG (environmental, social and governance) ratings on cross-border M&A, utilizing data from Chinese A-share listed companies during 2009-2021. The f i ndings indicate that superior ESG performance signifi cantly enhances the probability of foreign acquisitions. Specifically, compared to non-state-owned enterprises and central and western regions, the effect is more pronounced in state-owned enterprises and eastern regions. Compared to fi rms in heavily polluting industries and regions with weak environmental regulations, superior ESG performance signifi cantly increases the likelihood of foreign acquisitions for fi rms in non-heavily polluting industries and regions with stringent environmental regulations. Mechanism analysis demonstrates that ESG development enhances corporate social reputation and governance capabilities while reducing operational costs, thereby increasing fi rm value. Additionally, it promotes technological innovation, alleviates fi nancing constraints, and increases R&D investment, leading to improved productivity levels. These improvements in fi rm value and productivity subsequently increase the probability of foreign acquisitions. This study illuminates the crucial role of host country fi rms’ ESG development in attracting foreign investment and provides important implications for China’s global communication of sustainable development practices.