- Pandora Papers: China’s princelings and corporations use tax havens
- EU sorts out its relationship with Taiwan
- New US trade strategy: no change in sight
- Epidemiologist Zhong presents scenario for opening borders
- Wu Ken – The hopes of China’ ambassador to Berlin
- Evergrande stocks suspended from trading
- Today’s Asia Berlin Summit schedule
- Opinion: Stephen Roach on the risks of China’s economic miracle
The International Consortium of Investigative Journalists has once again composed a magnificent piece of research. The so-called Pandora Papers expose the financial machinations of influential politicians and corporations. Thousands of Chinese are among the profiteers. Nico Beckert took a closer look at the data package and explains why Chinese companies, in particular, set up shell companies in offshore centers. Something particularly juicy: While President Xi Jinping is leading a great campaign against corruption, it becomes clear that China’s princelings are also more than happy to take advantage of the haziness of tax havens.
Taiwan is currently on everyone’s lips in the West: Above all, the ongoing shortage of semiconductors is raising questions about the status of the small island. Amelie Richter shows in her analysis how the European Union is trying to find its own way in this relationship with Taiwan – and is getting tangled up between title disputes and loyalty among its members.
America is also in the process of reorganizing itself under Joe Biden. But those who had dreamed that tensions in China-US relations over the trade conflict would finally relent, are now in for a rude awakening. Biden’s trade representative Katherine Tai presented the new US trade strategy for China on Monday. The tenor: trade barriers between the two nations will probably not be lifted for the time being.
I hope our latest issue provides you with many new insights!
Michael Radunski
Feature
Pandora Papers: Chinese maintain thousands of shell companies
Nearly 2,000 Chinese citizens appear in the largest data leak on shell companies in tax havens to date, according to data compiled by the International Consortium of Investigative Journalists (ICIJ). The People’s Republic ranks among the countries with the most beneficiaries, with 1,892 owners of shell companies. According to the data, a current politician and a former politician of the People’s Republic also maintain secret companies in offshore financial centers.
A total of 336 names of current and former politicians appear in the data leak. The package, dubbed the “Pandora Papers,” includes 11.9 million documents from 14 legal and financial companies that set up and sell shell companies. While it is not illegal to maintain such companies, they often serve unlawful purposes, such as tax avoidance, money laundering, or evading financial laws of respective home countries. Shell companies can also be used to hide assets overseas.
Access to investors from abroad
China’s strict financial and foreign exchange laws are a significant cause of the high number of shell companies owned by the Chinese outside their country. The purpose of these companies is to circumvent restrictions on trade, capital flows abroad and foreign investment in Chinese companies, according to The Wire China, which is involved in the analysis of the data as a cooperation partner of the ICIJ.
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