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

Chinese students rank first in terms of the number of international students studying in Australia, but new rules are set to cap foreign student numbers

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Students walk past stalls during orientation week at The University of Sydney. Photo: Reuters
Kandy Wongin Hong KongandHe Huifengin Guangdong

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.

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“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.

The decision to cap foreign students, which was announced by Canberra on Tuesday, would limit the number of new enrolments to 270,000 for 2025 as Australia aims to ease record migration levels.

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.

The new policies would limit the number of international students going to Australia, which will inevitably downsize the number of new immigrants
Bill Liu, Guangzhou Cheuk Yuet Migration Consulting Services

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

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