China expands transnational education to keep students home

China approved over 200 new transnational education partnerships in May 2026 as Beijing expands “internationalisation at home” efforts to reduce overseas study costs and retain billions in education spending domestically.

China Great Wall
China Great Wall
Hanson Lu /Unsplash

China approves over 200 new partnerships

China has approved over 200 new transnational education (TNE) partnerships in May 2026, highlighting the country’s accelerating push to expand international education domestically and reduce reliance on overseas study.

The approvals by the Ministry of Education of the People's Republic of China include new joint institutions and collaborative academic programs between Chinese and foreign universities, further strengthening China’s “internationalisation at home” strategy.

The latest expansion reflects Beijing’s broader efforts to improve domestic higher education capacity while reducing the massive outflow of education-related spending associated with overseas study.

Chinese students generate billions globally

China remains the world’s largest international student source market, with Chinese students contributing heavily to universities and local economies across major destination countries.

The Educationist estimates that Chinese students collectively contribute approximately USD 45-65 billion annually to the global economy through tuition fees, accommodation, and living expenditure.

According to the US-China Business Council, Chinese students contributed approximately USD 14.4 billion to the United States economy in 2024 through tuition fees and living expenditure.

In the United Kingdom, Universities UK International stated in evidence submitted to the UK Parliament’s Foreign Affairs Committee that Chinese students contributed approximately £5.4 billion (around USD 7.3 billion) to the UK economy in 2021 through tuition fees and living costs.

According to Statista, education income generated from Chinese students studying in Australia reached approximately AUD 12 billion (around USD 7.8 billion) in the 2019 financial year, with China remaining the largest contributor to Australia’s international education export industry.

According to the Canada China Business Council, Chinese student spending in Canada reached approximately CAD 5.72 billion (around USD 4.2 billion) in 2019.

Combined, the United States, United Kingdom, Australia, and Canada alone account for more than USD 33 billion in annual Chinese student-related economic activity. The figure does not include additional spending linked to overseas study preparation and related industries, such as language training, standardized testing, education agents, overseas school visits, family tourism, aviation, insurance, and other cross-border consumption associated with international education.

Internationalisation at home

As overseas education costs continue to rise and geopolitical uncertainties increase, China is increasingly seeking to retain more students domestically by expanding access to international programs within the country.

The rapid growth of TNE partnerships allows Chinese students to access foreign curricula, dual-degree programs, and international qualifications without leaving China. The strategy also supports Beijing’s broader goals of strengthening domestic higher education competitiveness and reducing large-scale outbound education spending.

Over the past decade, China has steadily expanded Sino-foreign cooperative education, including joint campuses, pathway programs, and collaborative degree partnerships with overseas institutions.

The latest approvals suggest China is no longer focused solely on sending students abroad, but increasingly on bringing global higher education into China itself.

Implications for foreign universities

For foreign universities, the development presents both opportunities and challenges.

China’s huge student market continues to make the country strategically important for international higher education providers, and domestic partnerships offer new ways to recruit and engage Chinese students inside China.

However, the expansion of local international education options could gradually reduce demand for full overseas degrees, particularly at undergraduate and taught master’s levels.

Many universities in English-speaking countries remain financially dependent on Chinese international students, who often pay full international tuition fees and contribute significantly to institutional revenues.

As China accelerates its “internationalisation at home” strategy, global universities may increasingly face a future in which access to Chinese students depends less on outbound mobility and more on partnerships within China itself.