Market intelligence for international student recruitment from ICEF
18th Oct 2012

Competition in Chinese higher education sector heats up

Almost overnight, the Chinese higher education sector has gone from one with not enough capacity to one with too much. Competition for students has never been more intense, and the share of students among different types of institutions is shifting. One type of Chinese higher education in particular is facing very challenging times: the Chinese private colleges known as minban or “people’s colleges,” which for the past decade experienced incredible growth but which now “face extinction” according to a recent article in the Chinese-language Economic Observer. Minban sprung up and proliferated during a time (circa 1999–2005) when China’s public universities couldn’t keep up with demand. The Chinese government heartily endorsed minban then for increasing capacity in the drive toward the “massification” of China’s higher education system. The minban offer mostly professional and vocational courses and have mainly been the choice of students scoring poorly in the intense higher education entrance exam (the gaokao). Many minban have been accused of offering low-quality education and facilities – but not all, and for those minban that are well run, the reputational damage wreaked by sub-par minban couldn’t come at a worse time. That’s because they are faced with a multitude of other challenges to retaining market share:

  • Fewer Chinese high school students are taking the gaokao, resulting in a smaller pool of potential students to recruit. The number of candidates taking the examination has dropped from 10.15 million in 2008 to 9.15 million in 2012, according to official figures.
  • High school students and their parents are becoming more discerning and brand-conscious in their choice of post-secondary institutions.
  • More prestigious Chinese public universities are now expanding with second-tier colleges that allow students to graduate with the main university’s name on their credentials.
  • Foreign branch campuses from the US, UK, and Australia in particular are present now in the market and expanding.
  • More Chinese students are opting to study abroad (with more and more electing to go as early in their studies as secondary school). In 2011 the number of Chinese students who went to study abroad hit a record 339,700 and this figure is expected to rise to between 550,000 and 600,000 by 2014.
  • Online education platforms such as Coursera boasting prestigious foreign branding are setting up shop in China.

As the Chinese higher education market matures, it is inevitable that demand for post-secondary education is morphing into demand for post-secondary branded education. Those institutions that can’t compete on the basis of brand will have to think of other ways of appealing to an increasingly sophisticated student market.

Most Recent

  • US: Climate of uncertainty continues for international students amid legal action on internships and a proposed $70,000 OPT fee Read More
  • Australia: New rules now in force for accompanying dependants and onshore student visa applications Read More
  • Seven predictions for international student recruitment in Latin America Read More

Most Popular

  • Which countries will contribute the most to global student mobility in 2030? Read More
  • Research shows link between study abroad and poverty alleviation  Read More
  • Beyond the Big Four: How demand for study abroad is shifting to destinations in Asia and Europe Read More

Because you found this article interesting

US: Climate of uncertainty continues for international students amid legal action on internships and a proposed $70,000 OPT fee In two broadcast memos issued in August 2026, the Immigration and Customs Enforcement department (ICE) clearly signalled that...
Read more
Seven predictions for international student recruitment in Latin America EdCo LATAM directors Simon Terrington and Jamie Ash have had a peek into their “LATAM crystal ball for...
Read more
Has Australia’s genuine student test gone too far? Updated data from the Department of Home Affairs makes it clear that visa grant rates continue to trend...
Read more
Vietnam: A strong economy at home is powering surging demand for study abroad Vietnam is one of the few economies in the world this year to have a favourable growth outlook....
Read more
Can UK universities realistically plan for foreign enrolment growth in the future? The Office for Students (OfS), the regulator of higher education in England, says that the sector is projecting...
Read more
New Zealand’s education exports surpass pre-COVID levels as sustainable growth strategy takes hold New Zealand Education Minister Erica Stanford announced recently that the country’s international education export earnings reached nearly NZ$5...
Read more
UK eases entry rules for Erasmus+ participants Following the British government’s announcement in April 2026 that the country would rejoin Erasmus+ in 2027, peak body...
Read more
Australia moves to reduce net migration with new restrictions on student family members and “visa hopping” In a speech at the National Press Club on 17 September, Australian Home Affairs and Immigration Minister Tony...
Read more
What are you looking for?
Quick Links