The South China Morning Post is reporting that ” Luxembourg has become the second-largest country to settle yuan payments in Europe after France, with more and more yuan capital flowing to the tax haven as Chinese firms rush to set up headquarters there.”
Their analysis is that “Luxembourg has been getting a lot of yuan traffic because of its superior tax and legal systems.”
Luxembourg’s tax and legal systems can’t have changed that much in the last year. Could this jump in Chinese investment also be linked to the British Virgin Islands – until recently China’s favourite tax haven – losing some of their appeal as a result of Offshore Leaks?
(hat tip: Offshore Watch)