British isolationism makes the City of London for China attractive
In mid-January, the British Finance Minister George Osborne Proudly merged a new agreement with the People’s Republic of China. Accordingly, the City of London is to become the worldwide-leading offshore center for the Chinese preservation, the RMB (RMB),. The went month’s negotiations. Getting started in this direction were already initiated at the beginning of September 2011.
In London Lote the Environment Jubel Storm. The news portal LondonlovesBusiness.Com writes from fantastic opportunities for new jobs. Lawing officers became "overnight" All new departments open to use this market. In addition, it was helped to trade with China. Finally it became again "true" give. "What is not possible to MOGEN?"
But there are also careful votes. Both Robert Peston, the BBC economic editor, as well as John Ross, Peston’s counterpuck at the Guardian, warn before too early joy. Both are the question of how far the current occurrence of the British government in Europe was able to procure such a project. If Great Britain is not the Chinese project with one "Reintegration in Europe" Connect, Bebobritans are unable to develop a reluctant strategy from this.
This concern may give it. Ironically, however, it is the real reason for the UK’s current isolationism in the EU, which makes the City of London for the Chinese offshore project attractive: the hostile setting of the City against any non-controlled regulatory project.
China liked London as a stalk towards "Reserve Currency" use. This status is currently the US dollar and the euro. After segregation of the City-of-London and Taxoasen specialist Nick Shaxson, China, China mooded the US in some ways. In the 1960s and 1970s, the Eurodollar market launched in the City had a rough impact on the US that the US could stabilize the dollar as international chain food.
became the Eurodollar market and is traded unregulated in London with dollars. Long before the Thatcher and Reagan-ARA, the origin of the financial markets were placed, as we know them today. Eurodollars are popular, because they allow tax bypass and money wash in a coarse style. On the other hand, this structure can be traded with several unsecured loans. This did not contribute insignificantly to the beginning of the present financial crisis. Also now trap will be known, where investors lose money on this structure.
Legally possible is all this through the special status of the City of London. It has rough special rights, official of the city tour the world and meet headquarters on behalf of this institution. Their influence in the British government is enormous (Europe and the city), which again showed himself in the youngest appearance of Prime Minister Cameron in Davos. There he weathered again against international financial transaction tax. For him, the National Interest Great Britain is the interest of the city.
City of London advertises China
Exactly these structures might use China. The city is happy to help. She has been tinkering for years at her prasence in China. They maintain Buros in Beijing and Shanghai. Pay for the work of these buros "Regular visits to the Lord Mayor (head of the City of London, Note CB) and the Policy Chairman (most important person in the city next to the Lord Mayor), as well as the organization of visits to lead Chinese government members, financial service providers and companies in the UK". The City organizes regular conferences with high-ranking politicians and bankers from the United Kingdom and China and maintenance "Advisory Council", participate in the leading head of the Chinese financial world.
In addition, the City studies can be created on the developing Chinese financial market. This is indicated in the potential of the RMB as international reserve food. At the same time, it is acknowledged that the Chinese preservation internationally has hardly been prasent and strong regulation is subject. But there is the hope expressing soon to access Chinese savings. This was created capital for foreign banks, transform the financial labels and China’s influence in a variety of ways. This is all the study published in June 2010 on behalf of the City published on behalf of the City.
Already there is a booming RMB offshore trade in Hong Kong. Nick Shaxson writes that this of the 1. Quarter 2010 to 1. Quarter 2011 of 0.7% rose to 7%. For the banks and the City of London, this market is interesting because they currently have a problem in investing their wrapping financial capital. Much of this money comes, saying observers of the scene, from the bank rescue packages of recent years. At the Chinese side, the interested parties consist of regional members of government, land sellers and construction investors. Chinese State Banks are very clear at the money rental, so Chinese investors are looking for a way over Hong Kong and soon over London.
The coarse standards of China should also be noticeable on the financial markets
Meanwhile, the world’s well-known phenomena developed in China "Round Tripping" sweeping. Money generated in China is placed on the account of a straw company via Hong Kong in a tax oasis, for example the British Virgin Islands,. From there, the money is overlooked as an alleged foreign investment again to China (Offshore Companies: On to China!To). Foreign investments are barely concerned about the tax. 10% of all "Foreign investment" come from the Virgin Islands, a small archipelago, on the 900.000 companies are based.
A growing Chinese middle class enriches itself and liked this to do this unsteady of state tunnel. In 2011 alone, 150 billion yuan from China should be loved over Hong Kong. The city wants to access this market. At the same time, the Chinese State hopes for a lower dependency from the dollar. Already now the Chinese preservation becomes more and more for settlement maintenance, ie an international contractual.
The coarse standards of China should also be noticeable on the financial markets. But the consequences of the new offshore zones both for the Chinese and the global economy are not foreseeable. Already there is a sub-prime crisis in China. Banks in Chinese real estate business unexpected loans, let themselves be ied as AAA and sell them with profit.
Also in the "real" Economy increases the problems of China. Daruber Weib the City very well, because it publishes a weekly bulletin about the development of the country for the British entrepreneurship association CBI. With the London Offshore Deal, China’s development occurs in a new phase. The possibilities for a fracture landing of the country have increased dramatically.