The complexities of Chinese family business succession loom large for the economy and have created an entire industry in China and in Europe

China's family business succession planning has become a major issue for the Chinese economy - so much so that advisers from Europe are keenly eyeing the burgeoning market.

These firms of advisers, collectively known as family offices, are in business to help China's family businesses pass the reins to the next generation, and as part of the process are arranging education for their children, providing tax and investment advice, and helping them strengthen their corporate governance.

This in turn helps such Chinese firms become more international, as their children are often educated overseas and learn to embrace Western business culture.

Many Chinese family businesses are in urgent need of internationalization. Technology from markets abroad can help them achieve needed structural shifts and technology upgrades as China's economy changes from an export-driven to a consumption-driven model, says Lu Yingni, managing director of EcoLeap, a London-based advisory firm.

"A lot of these companies are from a manufacturing background and are now very keen to look for European technology because they are losing their cost advantage," Lu says.

Because much of the advanced technology, in industries such as healthcare and renewable energy, exist in markets like the United Kingdom, the United States and Germany, many Chinese family companies are now venturing into overseas markets for the first time.

"In this process, the sons and daughters of the family firms' owners are playing a crucial role in helping find new technology and striking deals with the Western partners," Lu says.

"Many of them have studied and lived abroad previously, they speak fluent English and understand the business culture of Western markets. They know the cultural differences between their parents and the Western partners, so they can greatly help both sides to understand each other."

In recent years, many European family offices have recruited Chinese clients, one example being Oracle Capital Group, whose headquarters is in London.

Oracle Capital started to work with Chinese clients only 12 months ago, yet they account for 10 percent of the company's total client numbers. Out of its 100-plus employees, there are five Chinese-speaking advisers.

"The Chinese market is hugely important for us, and we think in the next few years there will be a transformation of Chinese family firms using services from family offices more actively, so we want to take the leading position and be prepared," says Anton Davidenko, head of marketing communications at Oracle Capital Group.