China and Luxembourg elected to develop their relationship further when it was announced that the Fourth Asian Infrastructure Investment Bank (AIIB) meeting would be held in Luxembourg. Next year's annual meet was approved by the Board of Governors of the AIIB.

Luxembourg had been a founding member of the AIIB as well as an important liaison between Asia and the rest of Europe in terms of investments. It is also famous for being one of the leading financial centers in Europe on an international basis.

When pressed for a comment, China Daily covered the AIIB Vice President and Corporate Secretary Danny Alexander's statement. He said that they were grateful for the selection. In his statement, he thanked the government of Luxembourg, as well as the people, and stressed that the country was an integral part of the financial organization.

Luxembourg already has a connection with China. Two Chinese banks are already operating in Luxembourg since 2016, where Finance Minister Pierre Gramegna and Hereditary Grand Duke Guillaume hosted a delegation from the Chinese government. They were there to finalize the deals from October 24 to 28 that year.

That had brought the number of Chinese banks in Luxembourg to a total of 8. Previously, there were six banks already operating in the European country. These are the Agricultural Bank of China, the Bank of China, the Bank of Communications, the China Merchants Bank, the China Construction Bank and the Industrial and Commercial Bank of China.

According to Lux Times, the way the Luxembourg government transacted with these banks had attracted Robert Chen, who has since established his firm Ping Pong in Luxembourg. The company is a global electronic payments firm which originated in China.

Danny Alexander continued to heap praises for the connection between Europe and China. He pointed out the longstanding relationship between the AIIB and European countries. While it was particularly pleasing for Luxembourg-one of the founding members to host the annual event, the big boon in this was that it would be an opportunity to showcase the organization's accomplishments to both the public and private sectors.

It can be noted that both China and Europe-the European Union specifically-have trouble with trading partner United States. Whether this serves to strengthen the ties between two allies who have the same problems remains to be seen.