Industry Overview

The market for education services remains strong. Clearly, there is a need for firms in China to advance the skills of their workforce. Plus, the number of Chinese students and employees studying abroad has grown dramatically. Recent data indicates that U.S. colleges and universities still remain the preferred overseas destination for those students. Short-term training programs or workshops in specialized fields as well as business education are particularly sought after. U.S. educational organizations can also sell teaching materials and equipment, convey the latest methodologies and case studies, lend or exchange faculty, and provide educational consulting services.

In 2005, almost 60 percent of the 110,000 Chinese students studying abroad, or approximately 63,000 students, chose the United States as their destination. Compared to the mid-1980’s, when only 4,900 students enrolled overseas, the remarkable rise in Chinese students studying abroad becomes apparent. During the 2004-05 school year, Chinese students accounted for 11 percent of all international students enrolled in the U.S., becoming the second largest group of foreign students in the country.

The 1.2 percent rise for Chinese student enrollment in the U.S. during the 2004-2005 academic year is even more impressive when one considerers the decline in recent years of Chinese student’s enrollment in other English-speaking countries, such as Britain and Australia. The desire for Chinese students to enroll in U.S. institutions is still high, and as family’s disposable incomes continue to rise in China and more families become financially able to send their children abroad to be educated, the student’s desires are increasingly possible. Chinese professionals are also attending vocational classes and using e-learning to upgrade their skills to increase their earning power.

E-Learning:

Many experts believe that e-learning is ideal for China because it solves much of China’s education needs. With its limited education resources, China can use long distance learning to educate its 200 million elementary and high school students. To that end, in October 2000 China’s Ministry of Education launched the “All Schools Connected” project, which will equip all of China’s 550,871 K-12 schools with e-learning systems by 2010. The Ministry also encouraged 67 top universities to offer e-learning degrees to produce more talent for the country’s burgeoning economy. The nation’s very best high schools can also create Internet schools to train teachers and tutor students in far-flung regions. Private companies also heeded the e-learning call; many now offer vocational training and certification exam preparation online. The export opportunities for U.S. firms on China’s e-learning market are K-12 content provider, Ministry staff training and foreign certification training.

Joint Degree Programs

In recent years, the opportunity to pursue a foreign-style education in China across many disciplines has increased due to the extraordinary growth of Sino-Foreign joint schools and degree-granting programs. Undergraduate Chinese students are taking part in “1-2-1” programs in increasing numbers. These programs, offered by their home Chinese university, provide students the chance to spend their 2nd and 3rd years of university abroad. Foreign universities use this arrangement to tap into China’s market for overseas study.

Despite the large, ever increasing number of Chinese undergraduate students in the US, the majority of Chinese students studying in the United States, approximately 82 percent, are post-graduate students. Chinese post-graduate students often use joint degree programs to further their studies abroad. Many of these joint degree programs are U.S. MBA programs. Presently, the U.S. leads the market in providing joint venture MBA and EMBA programs in China, but competition from European, Canadian and Australian organizations is increasing.

U.S. institutions will have to remain active in the promotion of American education in China, as competition for Chinese students from other English-speaking countries increases and as the expansion of the domestic education market in China creates an increasing number of opportunities for students to pursue higher education without leaving China. With this is mind, University admissions officers should be aware of and counsel prospective students on visa procedures affecting travel to the United States. Information on visa procedures can be found in the Market Research Report link found below.

Market Entry

Well known colleges and universities have greater name recognition and thus, require less active student recruiting programs. However, this is not the case for the majority of U.S. universities and colleges. In a brand conscious market, less well-known schools must implement active and strategic recruitment programs to establish credibility in China’s increasingly savvy education market. Access to China’s overseas study market is generally accessed through the following channels:

Direct Recruitment via Education Fairs: Schools that opt for direct student recruitment usually participate in any number of China’s international and domestic education fairs. Selected fairs target different market segments – i.e. undergraduate versus graduate students, so it is important for U.S. schools to find the fair that better fits their needs.

Recruitment via Partner Organization: Some schools also partner with local universities or recruitment/overseas advising centers to recruit students. As foreign universities have become a magnet for Chinese students, a cottage industry of agencies, brokers and go-between firms has developed. In recent years, the Chinese government has moved to license such companies. CS China can assist U.S. universities in connecting with authorized recruitment agencies and overseas advising centers. These organizations vary in scope, but generally provide information on foreign universities and offer guidance with assessment tests, school application materials, passport, and visa procedures. They can also serve as an active recruitment agent promoting particular foreign universities. Services are provided on either a commission basis or paid by the student. Schools should beware of “visa touts” (unauthorized individuals/organizations that claim to be legal agents) by carefully screening potential partners to ensure that they are actively involved and legitimate student recruiters.

Market Research Reports

China: 2006 Overseas Study Market Report

Market for Chinese Student Recruitment

Cable TV Market in China

Management Education Market in Eastern China

Upcoming Events

The ELS American Education Center

English Language Services Inc. (ELS) was established in 1961 in Washington D.C. by Dr. Edwin Cornelius, the author of "English 900". Since then, ELS has taught over 2 million students from more than 140 countries. With over 45 ELS center locations, 40 of which are located on American university campuses, ELS is today the largest campus-based academic English program in the world. Over 600 U.S. universities accept ELS Level 112 instead of the TOEFL ® as fulfillment of their English language requirements. ELS students can apply for and receive conditional admission to these partner universities before leaving home.

The new ELS American Education Center in Shanghai provides students preparing for a U.S. higher education with weekday, weeknight and weekend courses in academic English and university study skills. Students may complete Levels 1 to 9 of the ELS University Preparation Program before transferring to any U.S. ELS center with guaranteed level transfer to complete their program, before matriculating to university. Conveniently located on Anfu Road, ELS offers a unique U.S. style "mini campus", complete with U.S. higher education library, auditorium, language technology center and private garden.

For more details please visit the ELS website: http://www.els-aec.com

U.S. Commercial Service Contact Information for Education, Media & Entertainment

The U.S. Commercial Service offers a broad array of market entry services to U.S. companies in the education, media and entertainment industries. Please refer to the following relevant contacts for additional information on how we can help you expand your business in China.

Beijing Office:
Tel: (86-10)8529-6655
Fax: (86-10)8529-6558/9
Frank.Joseph
Qiu Jing

Shanghai Office:
Tel: (86-21)6279-7930
Fax: (86-21)6279-7639
Kevin Chambers
Vivian Bao

Guangzhou Office:
Tel: (86-20)8667-4011
Fax: (86-20)8666-6409
Eric Wolff
Eileen Bai

Chengdu Office:
Tel: (86-28)8558-3992
Fax: (86-28)8558-3991
Ireas Cook
Lily Lin