Universities panic as Chinese international students disappear

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Australia’s university sector and international education industry has entered panic mode after the Chinese Communist Party’s (CCP) mouthpiece tabloid, the Global Times, published an editorial telling Chinese students to “be cautious about studying in Australia”:

A loss of Chinese students after the pandemic lifts and international borders re-open would likely increase the loss of nearly $12bn universities are expecting from the current restrictions on entries from China.

The Group of Eight – representing the top universities in the country – plans to send a letter to Chinese Ambassador to Australia Cheng Jengye asking for his nation to reconsider the advice.

International Education Association chief executive Phil Honeywood said he would be reaching out to the Chinese government to lift the advice, saying 35 per cent of all foreign students who come to Australia are Chinese and their parents would be swayed by Beijing’s advice…

“Given that China is our largest market and counts for 35 per cent of our full fee-paying international students, the industry will be lobbying to ensure that this travel advice will be lifted as soon as possible.”

English Australia chief executive Brett Blacker said 27 per cent of all enrolments in English-language schools were Chinese – often as a precursor to entering university – and the Beijing boycott could harm the chances of his members saving hundreds of jobs.

“We certainly want reconsideration on this decision from China. It’s of significant concern … China is our number one source country,” he said.

“We are facing huge jobs losses as it is because of the international border closures … this would make any recovery on the other side even more difficult.”

A significant reduction in Chinese student numbers would be a welcome development.

As shown in the next chart, which comes from professor Salvatore Babones, 11% of total Australian university enrolments in 2017 were Chinese students – an unhealthy concentration that dwarfs other developed nations:

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This concentration likely increased further in the two years to 2019, given the 23% explosion in Chinese students at Australia’s universities over that period:

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This unhealthy concentration of Chinese students is reflected in the 13 CCP-run Confucius Institutes operating at Australian universities, alongside contributing to the erosion in English-language and teaching standards, as well as contract cheating.

While a collapse in the Chinese international student trade would obviously hurt the education sector financially, it’s the hit they need to return numbers to a sustainable level that safeguards ethical and pedagogical standards.

Maybe then they will return their core business to educating young Australians?

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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