The once-assured 'gilded guarantee' of studying abroad is quickly losing its luster. Amid escalating geopolitical tensions, the impact of the pandemic, and tightening visa policies worldwide, the wave of Chinese students going overseas has significantly cooled down.

Statistics show that in 2025, the number of Chinese students studying abroad dropped to 570,000—the lowest since 2016—far below the historic peak of 700,000 in 2019. Meanwhile, enrollment at Chinese higher education institutions surged to a record high of 10.7 million in 2025, indicating that an increasing number of students and parents are re-evaluating the actual return on investment of overseas education.

According to The Economist, veteran education consultant Yang Fan recalls that when he entered the industry 15 years ago, overseas students were highly respected in China. Parents universally hoped their children would broaden their international horizons and gain valuable experiences abroad. But times have changed. Many parents now question whether domestic universities are truly inferior and increasingly ask, 'Why should I spend so much money sending my child overseas?' This reflects a fundamental shift in Chinese society’s perception of the value of foreign education.

Can’t afford soaring tuition? Where are students turning after losing interest in the US, UK, and Canada?

Persistently high study-abroad costs are one of the main reasons behind the cooling trend. According to survey data released by New Oriental, a major education provider, the average annual cost of studying overseas rose to 605,000 RMB this year—an increase of nearly one-fifth compared to 2023. Under pressure from a sluggish domestic economy, household spending has become more conservative. Even those planning to go abroad now seek better value for money.

Latest data shows a decline in the number of Chinese students heading to the UK, US, and Canada, while regions like Hong Kong, Japan, Australia, and Malaysia are gaining favor. Yang Fan notes that as many as four out of five clients inquire about studying in Hong Kong, primarily attracted by the combination of top-ranked schools and geographical proximity. Additionally, low-cost countries like Malaysia offer strong appeal—students can complete an entire degree with a budget of just 100,000 RMB.

Beyond cost, policy barriers have further complicated studying in the US. In 2025, the Trump administration announced plans to actively revoke visas for Chinese students enrolled in critical fields and tied H-1B work visa lottery eligibility to salary levels, drastically reducing opportunities for recent graduates with lower starting salaries to remain in the US. Ms. Hao, aged 25, previously worked at a US startup but ultimately had no choice but to end her life abroad and return to China, as changing employers under her visa status proved extremely difficult.

Spent two million yuan studying abroad but earns only 4,000 yuan monthly back home? Why a foreign degree is no longer a job guarantee.

With overseas job prospects increasingly blocked, the proportion of students returning to China after graduation has hit a record high. In 2025, 94% of overseas graduates returned to China—a historic peak. Official data also reveals that between 2015 and 2025, a cumulative total of 5.2 million returnee graduates came back to China. However, this massive return wave has collided with harsh salary realities.

According to New Oriental's survey, the current average starting salary for returnee graduates is approximately 12,800 RMB per month, only slightly higher than the 10,700 RMB earned by domestic university graduates. Many returnees find themselves worse off than before, with some even forced to switch careers and take delivery jobs. In a television interview, a young woman revealed that her parents spent over 2 million RMB to fund her overseas studies, yet the job she found upon returning paid only 4,000 RMB per month—a disheartening return on investment.

Why do employers prefer domestic graduates? Are overseas students seen as 'disobedient'?

From the perspective of corporate employers, the value of overseas degrees has diminished. Many HR professionals question why a master's degree in China requires three years of rigorous training, while many UK or other foreign master's programs allow graduation in just one year. Combined with lower admission thresholds at some foreign institutions, the once-golden reputation of overseas education is now under serious scrutiny.

Beyond concerns over program length and quality, hiring preferences are shifting. Some HR departments perceive domestic graduates as 'more obedient,' partly because they haven't been exposed to Western liberal ideologies. In 2024, a senior executive at electronics giant Gree publicly stated they do not hire returnees, citing concerns over potential espionage backgrounds.

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  • Source: PR Times
  • Category: Survey