Australia’s appeal as top pick for Chinese students dims as Canberra caps foreign arrivals

Australia could lose its appeal as the top destination for Chinese students to study abroad following Canberra’s decision to cap foreign student numbers, which would be a blow to its A$48 billion (US$32.6 billion) international education sector, analysts and consultants said.

“It will take time for the full impact of [the student cap] decision to play out, but Australia’s reputation as a destination of choice for many international students has undoubtedly suffered a blow,” said David Olsson, national president of the Australia China Business Council.

By comparison, Australia received 717,587 new foreign students between January and May, according to official data.

Chinese students ranked first in terms of the number of new international students studying in Australia, with 153,504 new arrivals in January to May, followed by Indian and Nepalese students, according to Australia’s Department of Education.

“International students will not only benefit the education sector, but also the broader visitor economy,” said Olsson.

“The provision of housing, student and family tourism and casual employment in the hospitality sector are all benefits that flow from the study in Australia, and are all impacted.”

Analysis by economists at National Australia Bank suggested that spending by international students accounted for more than half the 1.5 per cent increase in Australia’s gross domestic product in 2023.

The international education sector was Australia’s fourth-largest export industry in 2023, valued at A$48 billion, according to Australia’s Department of Education

“The new policies would limit the number of international students going to Australia, which will inevitably downsize the number of new immigrants,” said Bill Liu, co-founder