As more and more Chinese students abroad fall into financial hardship as their families’ wealth dwindles, many take to the Internet to express their grief and seek advice on how to cope with the situation.
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When Xiao Zhang went to the United States to study in 2019, she never expected that one day she would have to work part-time jobs to pay for college tuition.
The 24-year-old Chinese student is currently pursuing an undergraduate course in design at a university in Alabama. So far, her parents have spent 1.5 million yuan (about $211,500) to fund her overseas study and living expenses.
But last October, her parents told her they were facing cash flow problems and could no longer support her financially. At that time, Zhang only had enough money to pay three months’ rent. She said she would need to pay tuition for another semester, but did not specify the amount.
Zhang is not alone. Her experience has become increasingly common.
Since last year, the video has been viewed more than 4.58 million times hashtag A message saying “study abroad funds have been cut off” appeared on the social media platform “Little Red Book”, which is regarded as China’s Instagram. As more and more overseas Chinese students find themselves in financial difficulty as their families’ wealth shrinks, many are taking to the Internet to express their struggles and seek advice on how to cope with the situation.
A 2023 survey jointly conducted by New Oriental Education and Kantar showed that 27% of students and parents who planned to study abroad for postgraduate studies said that their funding plans had been affected by the epidemic. This is significantly higher than the 19% who held the same view in 2021 and 2022.
“I don’t have time to feel sad because I need to make money as soon as possible to pay for my tuition and rent,” Zhang told CNBC in Mandarin.
Zhang’s father invested in the pharmaceutical industry during the Covid-19 pandemic but has since suffered huge losses. He saw his wealth and investments shrink and eventually told his daughter that he could no longer support her education in the United States and offered to pay for her flight home.
Zhang began looking for part-time work, such as nannying or on-campus work, but it wasn’t easy. It was a month later before she found a temporary job in another state.
“From November to January, I started working at 7 a.m. every day,” Zhang said. “I was very tired during that time and had no time to study. But at least I made enough money to pay for the next semester.”
Are overseas degree prospects brighter?
Chinese parents attach great importance to providing their children with a good education.
As the world’s second-largest economy develops, it becomes increasingly integrated with international markets, prompting more parents to send their children to study abroad and gain access to overseas opportunities.
According to the latest data released by the Chinese Ministry of Education, the number of Chinese studying abroad has reached 703,500 The annual increase in 2019 was 6.25%.In contrast, only 117,300 Year 2003.
“Some parents are professionals such as lawyers, doctors or business executives, and they want their children to get the best education,” Yan Zhimin, general manager of Shenzhen Botong Management Consulting Co., an overseas education consulting firm, told CNBC.
“Some are business owners. They hope that their children will learn new and advanced concepts through overseas study, and then return home to help develop the family business.”
In 2018, approx. 90% According to the Chinese Ministry of Education, 90% of Chinese students study abroad at their own expense rather than relying on scholarships or government funding.
This level of financial contribution means that international students from China have become an important group attracted by US and UK universities.
Mr. Yan, who has been in the industry for more than 15 years, said that most Chinese parents have made financial plans in advance for their children to study abroad. He added that they were rarely forced to reduce funding for their children’s overseas education because they were short of money.
China’s economic woes
China’s economic recovery after the epidemic is sluggish, and many Chinese families are feeling the pressure.
Michael Bai is a 21-year-old Chinese student studying economic and social history at the University of Glasgow.
After completing his first semester in December 2022, his father declared his real estate business bankrupt.
Bai had no choice but to find a way to pay back the money. He tried many different jobs to pay the bills, including delivering food, working in a restaurant, selling products in a boutique, and making bubble tea.
His father had previously made his fortune through real estate investments, but he was hit hard by the severe downturn in China’s real estate industry.
“Everything went well in the beginning,” Bai told CNBC. But when problems began to arise at a resort his father had taken over in a coastal city in southern China, there was a clear lack of investment in hotel maintenance and management.
Before Bai left to study in the UK in 2022, his real estate business losses had already begun to increase.
In the past few years, the Chinese government has cracked down on developers to reduce their reliance on debt for growth, triggering a downturn in the real estate market. Real estate and related industries once accounted for about 25% or more of China’s economic output and accounted for an important share of household wealth.
College tuition soars
While students face financial challenges, rising tuition fees in popular college destinations like the US and UK are making the situation worse.
a recent report The report shows that compared with 20 years ago, tuition fees at American universities have increased significantly in the 2023-2024 academic year, and in some cases have even doubled.
International Students pay higher fees Tuition fees at top UK universities. The UK government has capped tuition fees for higher education for local students, and tuition fees paid by international students are an important source of revenue for universities.
Bai told CNBC that he has successfully escaped the financial crisis.
Since then, he and his friends have established a business by selling used cars and providing related services, which they claim can generate a monthly turnover of 60,000 pounds (approximately US$75,100).
He said the company’s income was enough to support him through his studies, and he planned to stay with the company even after earning his degree.
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