China’s HE success story needs a new chapter on inclusivity

China’s higher education system has undergone remarkable growth and transformation over the past two decades. According to the Ministry of Education of the People’s Republic of China, the number of higher education institutions increased from 1,022 in 1998 to over 3,000 in 2023, reflecting the government’s substantial investment in research, infrastructure and global competitiveness.

Despite facing economic challenges and a rapidly declining population, Chinese universities – particularly those included in the Double First-Class University Initiative – are likely to sustain high levels of funding and continue their upward trajectory.

Sustained investment

China’s economic slowdown and demographic decline have raised concerns about the sustainability of its expansive higher education investments. The National Bureau of Statistics reported that China’s GDP growth rate slowed to approximately 5% in 2023, while the working-age population has been declining since 2012.

Despite these challenges, official government documents and the 14th Five-Year Plan emphasise the long-term strategic importance of higher education to national rejuvenation and technological self-reliance.

In 2023, China allocated around 4% of its GDP to education, amounting to approximately CNY4.1 trillion (US$564 billion), with a substantial portion directed towards higher education and research.

A significant share of this funding supports the Double First-Class University Initiative, which covers 147 universities and nearly 600 disciplines. According to a 2022 report by the Ministry of Education, institutions under this initiative receive nearly twice the per-student funding compared to non-participating universities.

This focused investment has led to tangible outcomes. For example, China surpassed the United States in the number of STEM publications in 2022, according to the Nature Index. Furthermore, in 2024, Tsinghua and Peking universities were ranked among the top 20 globally by the QS World University Rankings.

China’s drive to develop world-class universities is also reflected in the growing number of its international collaborations, research partnerships and joint degree programmes. Between 2010 and 2023, the number of joint research papers co-authored by Chinese and international researchers increased by over 200%, as reported by Scopus.

In addition, China has expanded its scholarship programmes to attract international students. Over 490,000 foreign students studied in China in 2019, positioning the country as the third-largest destination for international education globally, according to the UNESCO Institute for Statistics.

Several key factors explain why China remains committed to maintaining high levels of funding for its universities despite economic headwinds and demographic changes.

• An innovation-driven development strategy: One of the primary drivers of continued investment in Chinese higher education is the country’s ambition to transition from a manufacturing-based economy to one centred on innovation and high-tech industries.

Government initiatives such as ‘Made in China 2025’ and ‘China Standards 2035’ emphasise the role of universities in developing talent, driving research breakthroughs and fostering technological innovation.

Notably, Chinese universities filed more than 60,000 international patents in 2022, according to the World Intellectual Property Organization, highlighting their expanding influence in global innovation networks.

• National security and technological self-sufficiency: In response to escalating geopolitical tensions, particularly with the United States, China has prioritised its technological self-sufficiency. Elite Chinese universities play a pivotal role in advancing research in strategic sectors, including semiconductors, artificial intelligence and quantum computing.

To strengthen these efforts, the government allocated approximately CNY50 billion (US$7 billion) in 2022 to support AI research at leading institutions such as Tsinghua University’s Institute for AI Industry Research.

• Global competitiveness and soft power: China’s international education strategy seeks not only to enhance domestic development but also to expand the country’s global influence. Initiatives like the Belt and Road Initiative aim to promote cross-border cooperation and extend the reach of Chinese universities across Asia, Africa and Latin America.

By 2024, Chinese institutions had established over 180 Confucius Institutes worldwide, providing language and cultural education that strengthens China’s global soft power.

Regional dominance

Many Asian countries, including Japan, South Korea, Malaysia and Singapore, have implemented policies to enhance the global standing of their universities.

Japan’s Top Global University Project, launched in 2014, and India’s Institutions of Eminence initiative, established in 2017, are notable examples.

South Korea’s Brain Korea 21 (BK21) initiative, now in its fourth phase since launching in 1999, has sought to foster graduate-level talent and improve research competitiveness. According to the Korean Ministry of Education, the BK21 programme provided support to over 600 research teams across various universities between 2020 and 2023, leading to an increase in international research collaborations and published papers.

Despite these achievements, challenges remain, including funding fluctuations and the concentration of resources at a few top institutions.

Malaysia has pursued similar goals through its Malaysia Education Blueprint 2015-2025 (Higher Education), which emphasises the development of research universities. Institutions such as Universiti Malaya (UM) have improved their international rankings, with UM ranked 65th globally in the 2024 QS World University Rankings. However, despite these improvements, Malaysian universities face challenges in sustaining consistent research funding and attracting global faculty talent.

Singapore, through initiatives like the Research, Innovation and Enterprise 2025 plan, has consistently invested in research and development. Institutions such as the National University of Singapore and Nanyang Technological University consistently rank among the top 20 globally, according to the QS World University Rankings.

Singapore’s success is driven by its targeted funding, strong industry partnerships and emphasis on attracting world-class faculty and students. Nonetheless, the country’s higher education system operates on a much smaller scale compared to China’s expansive network of universities.

Despite the efforts of these countries, data from the Times Higher Education World University Rankings shows that these programmes have not matched the scale or systemic impact of China’s Double First-Class University Initiative. China’s advantage lies in its combination of long-term stable funding, integrated national strategies and the sheer size of its higher education sector.

Asian challenges

The comparative success of China’s higher education strategies stems from several key factors. First, Japan has experienced a decline in its research workforce. Data from the Ministry of Education, Culture, Sports, Science and Technology indicates that the number of full-time university faculty under the age of 40 decreased by 12% between 2010 and 2022. This decline has hindered Japan’s ability to sustain its research output and innovation capacity.

Second, inconsistent funding in other Asian countries affects long-term planning and implementation. In India, public expenditure on higher education remains below 1% of GDP, limiting the scope and effectiveness of the Institutions of Eminence initiative.

South Korea invests approximately 1.5% of its GDP in higher education but faces challenges aligning university programmes with labour market needs. Malaysia has made strides in increasing research output, but still struggles with maintaining stable funding streams, while Singapore’s strong financial commitment is limited by its smaller scale.

Third, differences in policy coordination contribute to varying levels of success. Although South Korea’s BK21 initiative has improved graduate education and research productivity, fragmented policies and shifting political priorities have constrained its broader impact. Similarly, while Malaysia’s education blueprint has improved institutional rankings, implementation challenges and bureaucratic delays have limited its effectiveness.

Lastly, internationalisation levels vary significantly. While China enrolled over 490,000 international students in 2019, South Korea hosted approximately 160,000, Japan 312,000 and India 50,000, according to the UNESCO Institute for Statistics. Singapore, though successful in attracting top talent, operates a smaller higher education sector overall.

Concerns about inequality

While China’s pursuit of excellence has significantly enhanced its top-tier universities, concerns about growing disparities within the higher education system persist. According to the Chinese Academy of Social Sciences, the funding gap between institutions participating in the Double First-Class University Initiative and non-participating universities has widened from a ratio of 2:1 in 2015 to nearly 3:1 in 2023.

This growing divide risks marginalising regional universities and limiting educational opportunities for students from underdeveloped areas.

Disparities are evident in research funding allocation and admission quotas. A 2022 report by the China Education Policy Centre found that universities in major urban centres like Beijing and Shanghai receive nearly four times more research funding per student compared to institutions in Western provinces. This imbalance exacerbates socio-economic inequalities and restricts access to quality higher education for marginalised populations.

To address these concerns, policy-makers should balance the pursuit of global competitiveness with broader inclusivity. Measures such as allocating targeted funding to regional and vocational institutions, expanding digital education platforms and fostering inter-institutional collaborations can help mitigate inequalities.

Lessons from Australia’s Regional Universities Network, which uses targeted funding to enhance education access in less populated areas, could be adapted to the Chinese context to improve regional equity.

Private sector and international partnerships

While government funding remains the backbone of China’s higher education sector, private sector investments and international collaborations are increasingly significant. Companies like Huawei, Tencent and Alibaba have established partnerships with top universities to support research in emerging technologies. According to the China Statistical Yearbook on Science and Technology, private sector contributions accounted for approximately 15% of total university research funding in 2023.

International partnerships have also expanded rapidly. By 2023, Chinese universities were involved in over 1,200 joint degree programmes with foreign institutions. Collaborative efforts with universities in Europe, the United States and Asia have enhanced research capabilities and institutional reputations. Notable examples include Duke Kunshan University (a partnership with Duke University) and the University of Nottingham Ningbo China, both of which attract high-calibre faculty and students from around the world.

Sustainability

Several factors will influence the sustainability of China’s higher education growth.

First, demographic shifts will reduce the number of college-aged students. Estimates suggest this cohort could shrink by 15% by 2035. In response, Chinese universities may need to diversify their recruitment strategies, enhance international student enrolment and develop their online education offerings.

Second, economic uncertainties could pressure government spending. Although higher education remains a national priority, future financial constraints may necessitate more efficient resource allocation and increased reliance on private funding.

Third, technological advancements offer both opportunities and challenges. The adoption of digital learning tools, AI-based teaching platforms and virtual research networks can mitigate demographic pressures and expand educational access.

Lastly, geopolitical dynamics will shape international collaborations. While tensions with some Western countries may restrict certain partnerships, regional cooperation within Asia, Africa and Latin America is expected to strengthen, particularly through initiatives like the Belt and Road Initiative.

A global leader

Despite facing economic and demographic challenges, China’s higher education system is poised to maintain its growth trajectory. Sustained government support, strategic investments in top-tier universities and strong international engagement have positioned China as a global leader in higher education.

Other Asian countries can draw valuable lessons from China’s comprehensive approach, particularly in securing stable funding and aligning national priorities with institutional goals. However, balancing excellence with inclusivity will be essential to ensure a more equitable and globally competitive higher education landscape.

Futao Huang is vice-director and professor at the Research Institute for Higher Education at Hiroshima University, Japan.

This article is a commentary. Commentary articles are the opinion of the author and do not necessarily reflect the views of University World News.