Closer understanding of wealthy Chinese will pave the way for more business opportunities in Europe

There are now a recorded 315 Chinese people worth at least $1 billion (733 million euros), 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 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, 590 million euros) of his personal fortune in a project to restore London's Crystal Palace, represents a magnificent opportunity to breathe business life into a still lack-luster European economy.

London Mayor 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 again prove 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 cultural 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.

It is, therefore, essential that European businesses gain a deep understanding of these wealthy Chinese individuals, the potential investment opportunities and their motivation.

Ni's proposal provides us with some insight into the mindset of these Chinese billionaires. Clearly, short-term financial gain does not appear to be the motivation. Rather it is the need to contribute significantly to Europe's cultural landscape that appears to have motivated Ni.

This fascination with Europe's cultural landscape is not just confined to the wealthy elite but explains the incredible rise in tourists from China. It is the city environments - many of which are in dire need of substantial investment in order to quick-start restoration and regeneration - that most definitely appeal across Europe to the Chinese.

Gaining face - respect from others - still drives much of modern China and Chinese business and consumer behavior. Business and financial success is seen by many Chinese as a major way of gaining face, but for these new and growing billionaires this has already been exhausted. The Chinese billionaire is, therefore, searching for new ways to continue to gain face, and is not in desperate need for more financial success, in sharp contrast to the typical US billionaire.

Instead, we are witnessing the beginning of a growing number of Chinese billionaires keen to gain face via substantial contributions to European cities' cultural attractions. Furthermore, short-term financial gain is not on their agenda at all.

This will be key to attracting and retaining investment from these cash-rich Chinese entrepreneurs. Enticing them in the first place is also not so much about the usual business and market analysis, but much more about their personal need to enhance their knowledge and reputation where high culture is concerned.

This is clearly the motivation behind Ni's recent interest in the restoration of Crystal Palace. Of course there is also some financial consideration, but this is far outweighed by London's image of culture and sophistication. Once this is fully understood by Europe's business community, it should be much easier to engage with the modern Chinese billionaire and gain invaluable investment funds.

Opposition to investment ideas from China such as Ni's are not just misplaced but also represents a missed opportunity. Entrepreneurs often voice ideas, which require some considerable analysis. This is why they are entrepreneurs, and the modern Chinese entrepreneur is no different. But these ideas should be viewed positively, as an opportunity for dialogue and discussion.

Ni's tentative plans should also be seen in this light. It may well be the case that the environmental impact of a full-scale restoration of the former palace more than negates any short and long-term economic impact, but this does not mean the door should be closed on Ni right away. Instead, a process of engagement with the billionaire is now imperative, with alternative investment of a similar, culture-focused nature put on the table.

Ni's proposal should also not be seen as an isolated, solitary idea. All of China's 300-plus billionaires are now driven by this need to gain face through enhancing their reputation for culture and sophistication. They are also prepared to pay an extremely high price (investment) in order to achieve this gain.

This is exactly the sort of investment opportunity that Europe and European businesses need more than ever. It is time for Europe to tap into the Chinese billionaire.

The author is a visiting professor at the University of International Business and Economics in Beijing and a senior lecturer on marketing at Southampton Solent University's School of Business. The views do not necessarily reflect those of China Daily.

(China Daily European Weekly 11/01/2013 page11)