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China-Oz Trade War: Higher Ed Next?

Will PRC students soon be an increasingly rare sight on Aussie campuses?

Just when you thought China-Australia relations could get no worse, it seems they find something new to quarrel about. Perhaps the last golden goose Australia has left is its higher education sector, which still (rather amazingly) attracts scores of PRC students. That said, there appears movement afoot in China for recruiters to not promote Australia as a higher education. Anticipating matters may get worse (which is likely given how things are going between these two), Aussie universities are setting their sights on diversifying their international student base. 

Researchers from the Australia National University in Canberra are urging the government to get moving in making their country's universities less reliant on Chinese students:

Dr Dirk van der Kley and Dr Benjamin Herscovitch argue education is Australia’s only remaining export valued over $10 billion annually which is “both reliant on China and which Beijing can target without significant self-harm”. The industry employs thousands of Australians, and is closely linked to the country’s technological competitiveness, the pair say.

Coercion against the sector would significantly impact Australia’s prosperity. “If there was a significant drop in students from China, the revenue and research loss would be impossible to fully replace through other international markets because China is the largest source of globally mobile students,” the authors write. The government would not be able to step in and fill that gap, they say.

Speaking of which, the Chinese government holds more cards in being able to harm Australia's economy given the economic importance of higher education service exports to the PRC and other nations:

The pair point out that media reports already indicate education agents in some Chinese cities were discouraged from promoting Australia as an education destination. Beijing could go further, by fostering negative views of Australia and its universities via the state-controlled media or even ceasing to recognise some or all Australian qualifications.

By recruiting more students from other locations, Australia could safeguard itself from Chinese coercion to a degree.

With both countries apparently not keen on talking with each other to resolve economic and other differences, it will probably happen all of a sudden and without much warning if the PRC starts discouraging its students from going to Australia.