Chinese Students are becoming International: Many are enrolling in universities overseas, causing China to lose top graduate minds and money
Did you know that this year hundreds of thousands Chinese high school graduates will enroll in foreign universities and tens of thousands more will transfer overseas into local high schools? This year, many Chinese parents will make the tough decision to invest at least $30,000 USD per year in the school tuition of their children, only to see them over Skype dates and during short summer holidays. Thousands of Chinese high net worth families, however, are easing the transition by emigrating overseas every year as a single unit. Tiger moms could not be happier.
According to a recent study by Merchants Bank and business consulting firm Bain & Company, of the more than 500,000 Chinese considered high net worth individuals, 60% are considering “investment immigration” or are already finalizing the process. One of the main reasons this phenomenon, in which Chinese Students are becoming International, is occurring is so that the children of wealthy Chinese will have access to better education.
Xu Li of Meislin Immigration in China says that based on her experience, 90% of the people that she sees doing investment immigration emigrate particularly for their children because “the cost of (paying for the) education of a child from junior high school to college will offset the cost of migration.” Lake Mary Prep in Orlando, FL, indicative of many other private schools around the U.S., currently enrolls close to 60 Chinese International Students. It has witnessed this new trend firsthand, as many of its students live nearby the school in upscale residential neighborhoods, while some of them being the only English speakers in their families.
Who Benefits from Chinese International Students?
In the U.S., thanks to an EB-5 visa, any foreigner who (1) invests over $500,000 USD into the American economy and who (2) creates at least 10 full-time jobs, among other responsibilities, is eligible to obtain a green card and becomes a permanent resident. An EB-6 visa allows any foreigner who (1) receives a financing of minimum of $100,000 USD from a U.S. investor and who (2) within two years creates 5 jobs or earns more than $500,000 USD in annual revenue with other minor stipulations is also eligible for residency. In St. Kitts and Nevis, other popular emigration destinations, a foreigner can invest nearly $400,000 USD and in return receive instant citizenship for his/her family and the benefit of easy access to 125 countries. In addition to the U.S., studies show that Chinese elite families also choose Canada, Australia, and Singapore as preferred destinations for their children and their money.
Many companies benefit from Chinese International Students: education consulting agencies that charge from 25,000 RMB – 100,000 RMB to assist in college placement, test prep companies such as Kaplan and New Oriental that specialize in SAT tutoring, and universities that generally charge full tuition from overseas students. Despite benefits to organizations, the greatest benefactors of the surge in foreign students are the countries receiving the students. The U.S. Chamber of Commerce estimates that each year international students alone pour $20 billion USD into the local economy; This figure is without accounting for the combined impact of families who have participated in the investment immigration process and without accounting for its 75% year by year growth.
Education is big business and in the case of the Chinese economy, it is an especially hurting business. The impact of the epic “brain drain” of students is more than empty seats in Chinese universities; It signifies a greater loss of financial investment and job creation in China.
While academic reform will be a slow and steady process, it is vital that China more clearly recognizes some of its greatest obstacles towards economic growth and prosperity. I believe higher education is a good place to start.
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Casey Sapp has a finance background but now focuses on entrepreneurship in the Chinese education system. He is a certified College Counselor, working as an education consultant in Beijing. One of his aspirations is to develop innovative, low-cost education solutions. 
I think it is interesting that many Chinese international students are leaving China to get higher education. It is not only about the money but it says a lot about China too – that the education there does not suit people’s needs. China needs to make sure that those who do go to the states to study will come back later to contribute to the economy
The major issue is, in my opinion, is not how much money China is losing to other countries, but is how much potential money it is losing. What are the statistics of the number of chinese international students who never come back to China? How many just get a job in the U.S and stay there?
This is the real problem, because as people go to study, especially in the states, they experience freedom that they don’t have here in China. Then, many of them simply choose to stay and China is losing many of its well-educated class.
Found this today. Somewhat related to the many ways $ is leaving China: http://cmp.hku.hk/2011/06/16/13322/
I like this article a lot. I think it says a lot about China too, as education is a good measurement of a country’s strength. I have always wondered how China has become so strong economically, and I guess one of the reasons has to be a strict education. Nevertheless, it seems that it is a very typical Asian type of education that has a lot of emphasis on memorizing and copying rather than on creativity and innovation. I think that is the Achilles heel of China as it continues to grow, and this is what will hurt it in the near future and as chinese students go international
The education issue in China is actually more sensitive than most people think. China has been investing billions of RMB in its education system, and everyone that understands a bit about China knows that the most important issue for Chinese parents is their child’s education.
The inability for China to compete with great universities in the world signals a problem that, in my opinion, the Chinese government simply refuses to recognize. It is not about how much money they put in education, but it is about HOW they educate. It is impossible for the education system in China to become free and open as it is in the West, simply because it is in CHINA – a society that is not open in general. Therefore, it is stupid to expect that smart Chinese international students will not go study abroad.
Unless China has something better to offer them, they will continue to leave.
Speaking as an American college student, I must say I do see many more Chinese people now than I used to (I am a fourth year student). It is amazing though because there are very distinct characteristics that portray the most of them: They are very diligent and hard working, and they are often very competitive. I do feel, even though I haven’t been to China, that many of these students must not fit in to the Chinese education system which probably doesn’t provide them with the same challenges and diversity that the American one does. so, no wonder Chinese international students are getting smarter and better than the American students
Hi Casey very interesting article. I liked how you gave statistics to support your arguments, with which I completely agree!
Good job
I think the author is actually describing a problem rather than a solution. Chinese students are becoming international because their education system back home is not sufficient for their needs. This is the biggest problem that China has – the fact that the Chinese are all really motivated about education is known to all. but the country doesn’t seem able to create great education for everyone who wants it. that is why, I think, many Chinese people go abroad.
China should see this as a problem, because who knows how many of these students actually go back to China and how much value China loses by keeping the best of its minds away.
Well, it’s not secret that Chinese students are now international. question is can other countries fight back? with more rising competition from China, it will be much more difficult for other countries to compete
Lovely post, and I agree with Casey. China needs to quickly recognize that chinese students are leaving and might not come back. once it does, it may use certain incentives to get them to come back or to even keep them in China
Hi Laura, you’re right, but what can China do about it? the phenomenon of Chinese international students is one that the government can do very little about, simply because China cannot provide the same level of education other countries can.
really interesting post. keep up the good work
I am a “Chinese international student” as the article defines me. I am studying math and economics in Texas A&M University, and I’m in my third year now. I consider myself very lucky to be here, because I felt that after I graduated from high school, China did not have good education to offer me. I wanted to see another culture and to make full use of my capabilities. my parents saved their entire lives so I can be here, and I feel very honored because of that. That is why I am studying very hard. I hope that if I do come back to China next year, I will be able to find a job that fits my abilities
excellent post by Mr. Sapp. We in the states lack the understanding about chinese international students. it’s good to receive unbiased opinion about it
Funny, I just found out about this website, and this is the first article I chose to read. I think this is a very important issue, because if China can’t count on its educational system to attract students and to keep them in China then it might be the beginning of the end. It is given that the U.S education system is the best in the world – no doubt that most of the world’s top schools are there. what should worry China is the trend – that many students are leaving and are not coming back. it is one thing that chinese students are becoming international, but it is another thing that China cannot use this for its own benefit
FYI: Most of these chinese international students couldn’t get into an university in China due to their college exam scores are too low.