He said China has been catching up in higher education and scientific research but still lags in basic research, which he says is the real source of innovation and is greatly needed as China aims to revive its past glory.

Shi, along with many academics who have been calling for the establishment of high-profile research universities in China, believes the addition of private top-level research institutions will add more vitality to the academic scene.

Westlake's financial support will come from the Hangzhou Westlake Education Foundation as well as government research and development funding. The university plans to recruit about 200 professors from around the world and nearly 2,000 researchers.

"We hope that after 10 or 20 years, Westlake University in Hangzhou, China, will be seen as a private institution of higher education built with Chinese characteristics and well respected by the world," said Shi.