Luxembourg is one of the minor nations in HOI4. It is one of the tiniest nations, considering it starts off with only one province. It has very in the little way of resources, manpower or industrial power.
Luxembourg is a miniscule concern to that of the great powers. Its position in the middle of France, Belgium and Germany saw that it would be part of the important Benelux Region. It has very little significance in the greater schemes of the great powers, and usually is barely a footnote in history. Should a war start between Germany and France, Luxembourg is likely to get invaded in the process since, akin to Belgium, it allows to bypass the heavily fortified French-German border., without offering any major resistance.