28 Jan '15, 8pm

China

China

Despite the reported concentration of Chinese investments within Asia, official Chinese OFDI statistics may not fully reflect the final destinations of China’s OFDI. Like companies from many countries, some Chinese companies initially invest in tax havens or offshore financial centers where there is minimal or no tax, such as Hong Kong or the Cayman Islands3 . Then, these companies reinvest this same money in other destinations, such as Africa and Latin America, through their subsidiaries in these offshore financial centers. Official Chinese OFDI only indicates the initial destination of investments. The graphic below illustrates China’s OFDI stock in each region, and also extracts potential flows to OFCs.

Full article: http://www.wri.org/blog/2015/01/china%E2%80%99s-overseas-...

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