Courting the new breed of investors

Closer understanding of wealthy Chinese entrepreneurs and their commercial objectives will pave the way for more business opportunities for Europe

There are now a recorded 315 Chinese people worth at least $1 billion, a figure which has rocketed from only 64 a year ago and none 10 years ago. China is now second only to the US when it comes to the number of billionaires.

Other leading emerging nations, Brazil (37), Russia (55) and India (22) combined can only muster little more than a third of China's impressive total of exciting entrepreneurial successes.

Furthermore, the recent announcement that one of these dynamic entrepreneurs, Zhongrong Group Chairman Ni Zhaoxing, plans to invest 500 million pounds ($804 million) of his personal fortune in a project to restore London's Crystal Palace, represents a magnificent opportunity to breathe business life into a still lackluster European economy.

The ubiquitous Mayor of London, Boris Johnson, has already added his voice to the many who have warmly welcomed the initiative.

Complete restoration of what was all too briefly one of the world's most incredible exhibition centers should result in numerous, lasting economic and social benefits. For example, an estimated 2,000 new jobs will be created during the restoration period alone. Once restored to its former glory the palace should prove once again to be a key venue for the latest and most innovative business developments.

However, those living locally have voiced their unhappiness with the plan, apparently a lack of parks in the area and the possibilities of increased traffic congestion are major concerns. While these are legitimate concerns, it is important not to miss the point here, which is that Chinese billionaires are willing to invest large sums in Europe and this has to be good news.

Of course this and other projects require the most careful scrutiny and detailed feasibility studies where all stakeholder concerns are considered. It may well be that this project does not even make it off the drawing board but it should be seen as an important opportunity for Europe and a crucial economic stimulus for the European economy. China has changed so quickly that many outsiders, especially those camped in other continents, remain unaware of these new breed of successful entrepreneurs willing to invest heavily overseas.

This exponential increase in the number of Chinese billionaires will also contribute to a move toward a more entrepreneurial Chinese society. The US is driven by an entrepreneurial culture that has resulted from the numerous world famous entrepreneurs and inventors over the centuries. China can follow the same path.

But this is not the same as US entrepreneurialism. China's version, perhaps best labeled Confucian dynamism, involves an exciting blend of modern and traditional cul-tural values.

Traditional Confucian values such as respect for seniority, close-knit family relationships and hard work remain and have not declined despite an increase in more modern values such as innovation, independence and entrepreneurialism. As a result, Europe has nothing to fear and everything to gain from this growing number of wealthy Chinese entrepreneurs.

In this case, Ni has made his knowledge and admiration of European art and culture a key reason behind the proposed restoration of London's former exhibition center. It is likely that other Chinese billionaires also share the same respect for Europe's rich cultural environment and also value highly any opportunity to enhance specific cultural quarters even further.

Sadly what appears to be lacking at present is the recognition across Europe of the investment potential where Chinese billionaires are concerned. In fact, the enormous wealth that this growing number possesses may even create a little fear across Europe.