I think the idea is to hide from other countries. So if you are a wealthy Chinese you have a much better time hiding your money in Delaware than in Paris for instance.
This reminds me of a term used on one of those expat/sovereign man blogs: "Redundant Array of Independent Jurisdictions". The idea being that you have citizenship from Country A, reside in Country B, and run your finances through Country C, so you have no single-point-of-failure in governance over your life/assets.
