For decades, an American college degree was seen as a golden ticket to upward mobility among China’s affluent families. It conveyed prestige, opportunity and a fast track into global circles. But that once-coveted path is now being reconsidered.
A growing number of Chinese families are reassessing the value of Western higher education, amid rising geopolitical friction, tighter visa scrutiny and an economic slowdown at home. Once the largest source of international students to the United States and Britain., China is shifting its gaze toward Asia. In this reshaped landscape, education hubs such as Hong Kong, Singapore and Malaysia are becoming more inviting.
“Studying in the United States used to be a kind of luxury spending,” said Yang Gang, founder of Beijing-based admissions firm AcadeMe. “But many families are now looking toward more affordable destinations.”
A 2025 survey by EIC Education, a major Chinese consultancy for overseas studies, found that students now prioritize academic quality and job prospects over geographic prestige.
The old formula — a name-brand Western degree leading to a prestigious job and, perhaps, permanent residency — is losing its appeal. “If you can’t get into a top-tier school like an Ivy League, then a U.S. degree doesn’t offer much of an edge in employment,” said one education industry source. “It’s more worthwhile to choose cost-effective places like Hong Kong or Singapore.”
The migration is not limited to China. Global inflation and the rising cost of living in America, Britain and Australia are pushing families across Asia, the Middle East and beyond to explore alternatives.
“Many parents worldwide are rethinking their children’s study abroad directions,” said Steven Smale, co-founder of INTO University Partnerships. “More Indian students are heading to Japan and South Korea, while Middle Eastern families are increasingly sending their children to Dubai or Doha.”
A pivot to Asia
Concerns over visa uncertainty and a pragmatic focus on employment are driving Chinese students toward Hong Kong and Singapore, both of which are actively courting talent amid U.S.-China tensions.
Lei Ya had her pick of prestigious American graduate programs. With offers from the University of Chicago, University of Southern California and New York University, the computer science major from Jilin University in northeast China was on a well-worn path to a top-tier U.S. education. Instead, she chose Singapore.
For Lei, the tipping point was U.S. visa uncertainty, particular after the Trump administration’s recent policy changes. Her decision reflects a broader seismic shift in education: a growing wave of China’s best and brightest are abandoning their American dreams for educational centers closer to home. This brain drain reversal, a boon for Asian universities, signals a deep-seated re-evaluation of the costs, risks and ultimate value of a Western degree.
Hong Kong has emerged as a favorite destination for mainland students, according to data from admissions consultancy EIC Education. Student visa approvals to Hong Kong increased to 62,000 in 2023 — a nearly 50% increase from 2019. The city’s appeal stems from globally ranked universities, a secure living environment and a government that aims to retain international talent. This year, Hong Kong doubled its non-local student quota to 15,000 a year. The University of Hong Kong alone expanded its international undergraduate intake by a third.
Institutions are seizing the moment. After the recent turmoil caused by U.S. Department of Homeland Security’s ban on Harvard University enrolling international students, top Hong Kong universities immediately extended an “olive branch,” offering admission and simplified transfers. The Hong Kong University of Science and Technology said it is currently processing several transfer applications. Admission offers have been extended to two postgraduate applicants from Harvard, whose research focuses are on science and technology and cross-disciplinary studies, respectively.
The trend extends beyond students to faculty. Amid U.S.-China geopolitical friction and cuts to American research funding, Hong Kong sees a golden opportunity.
“The current turbulent international situation provides a window for Hong Kong universities to attract global talent,” said Dennis Lo Yuk-ming, president of the Chinese University of Hong Kong, citing the city’s stability and the vast market in the Greater Bay Area for commercializing research.
Attracted by generous salaries, robust research funding and a low-tax environment, some academics are relocating to Hong Kong. “It’s relatively easy to get funding here,” said a professor who moved from the U.S. “The research environment is similar, and the safety factor is well known.”
Singapore, too, is reaping the benefits. Home to two of the world’s top 30 institutions — the National University of Singapore and Nanyang Technological University — the city-state is a magnet for talent such as Lei. Its welcoming visa policy, which allows graduates to stay for up to two years to find work, stands in stark contrast to the perceived precariousness of the American system. Of the 93,000 international students in Singapore as of June 2024, an estimated 60% are from China, according to data from Singaporean newspaper Lianhe Zaobao.
This diversification of student choice is becoming a global phenomenon, driven by hard-nosed economics. “European destinations are rising fast, especially Germany and France, because their public universities offer free tuition,” said Guo Bei, chief operating officer with EIC Education. She noted that Japan has also become more attractive, thanks to a devalued yen that has dramatically lowered the cost of studying there.
Value alternatives
Affordability is reshaping student flows. Pei Pei, a recent college graduate from Hunan, chose a Malaysian university over U.S. options for a simple reason: cost. Her graduate degree came in at $14,000 — cheaper than attending a lower tire university in China.
Malaysia’s appeal is increasing quickly. Chinese student applications soared there from 8,900 in 2020 to over 33,000 in 2024, according to Education Malaysia Global Services. The country is home to English-language branch campuses of major global universities, including Britain’s Lancaster University and China’s Xiamen University, offering Western-style degrees at a fraction of the cost.
These institutions often act as launch pads. Xiao Nan, a graduate of Xiamen University Malaysia, said nearly all her classmates pursued advanced degrees abroad. She herself was admitted to a master’s program at the Chinese University of Hong Kong.
Thailand is also seeing a sharp increase, with Chinese nationals comprising nearly 60% of international students there, according to the Western Returned Scholars Association.
Now, industry watchers are pointing to the next frontier: the Middle East. Qatar, backed by immense government investment, has built an “Education City,” an academic center hosting satellite campuses of elite American universities such as Cornell, Carnegie Mellon and Northwestern.
These outposts offer a unique value proposition: a brand-name American degree, often with generous financial aid, but with significantly lower living costs than their U.S. counterparts. It’s the latest strategic play in the fierce global competition for the international students.
Lei Ya and Pei Pei are pseudonyms
Contact reporter Han Wei (weihan@caixin.com)
