IN THIS ISSUE
Feature Topic 1 50,000 Chinese MBA
graduates each year, but only 4% from international programs
China’s MOE approves an
extra 35 international MBA programs
80% of international HR personnel respond negatively to Chinese MBA programs
General News 4 China’s MOE revises Joint
Program policy
First US-China joint higher education institute to start recruiting in 2013
University of Huddersfield opens joint research lab in Shanghai
Media & Promotion 6
Additional Data 7
Chinese Exhibitions and Conferences 10
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Joint MBA Programs in China
– a Bright Future?
“[China] must have at least 150,000MBA and EMBA graduates each year to reach the same business school scale as the US. Half of the graduates from Harvard and Stanford are trained for the US, and the other half are cultivated for the rest of the world. I believe that Chinese business schools will have this scale one day, but we still have a long way to go.”
Mr Lu Xiongwen - Dean of Fudan University School of Management
It has been over 20 years since the first Chinese MBA programs were officially approved by the country’s Ministry of Education (MOE). In this time more than 140,000 students have graduated from China’s growing number of MBA programs, which now number more than 200 nationwide.
MBA recruitment in China peaked in 2008 but experienced a slow down following the Global Financial Crisis. Secretary-General of the Beijing Graduate Employment Promotion Committee, Mr Guan Changhai, recently reported that while not yet back at 2008 levels, MBA recruitment in China is again on the rise and, typical of China, is rising quickly.
A broader problem, however, lies at the heart of China’s MBA landscape. A recent survey conducted by Business Week of 170 HR personnel from a range of multinational corporations found that only 20% of respondents were likely to view Chinese-educated MBA graduates favourably. This presents a clear need for Chinese MBAs to increase their international standing - and one clear way forward is for more international players to partner with Chinese institutions.
MBAs are delivered in China in one of three ways: Domestic Programs; Joint (International) Programs; and Transnational Programs. Joint and Transnational Programs both require MOE approval.
According to 2013 international MBA rankings published by the Financial Times, only three of China’s Joint Programs are currently ranked in the top 100. These include the Chinese Europe International Business School (ranked 15th), Peking University’s Guanghua School of Management (ranked 66th), and Fudan University’s School of Management (ranked 89th )
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SAMPLE ISSUE July 2013
Other high ranking MBA programs in Greater China are three Hong Kong providers; UST Business School (ranked 8th), the Chinese University of Hong Kong Business School (ranked 27th) and the University of Hong Kong (ranked 31st).
There are currently only 35 MOE-approved Joint Programs in China. Of this number, 15 programs obtained approval in 2012 alone. Despite this number growing quickly, Joint Programs only produce around 2,000 graduates each year, accounting for 4% of all Chinese MBA graduates.
The majority of Joint Programs are approved by the MOE to take only small to medium sized enrolments. This typically ranges from 30 to 200 students each academic year. However, the MOE has in some cases approved larger enrolments of up to 1,000 students per year. For example, the Cheung Kong Graduate School of Business (CKGSB) and China Europe International Business School (CEIBS) - both of which have dual campuses in Beijing and Shanghai - have been authorised to have enrolments of up to 1,000 students. Interestingly, both institutions currently fall short of this quota, enrolling between 200-400 students on average each year.
Most Joint Programs are also part-time, with the top-tier providers offering English instruction. There is, however, a trend towards more MBA programs being delivered in Chinese, or at the very least by professors with a stronger China background. This has been evident through an increase in Chinese professors whose academic training, research or professional experiences have been developed in China.
In terms of international partnerships, the US is leading the way in China with around 34% of Chinese institutions offering MBA programs with established partnerships with US institutions. A small number of Australian and Canadian institutions have also partnered with Chinese MBA programs. At present there are no UK institutions with established Chinese partnerships.
Tuition fees for Joint Programs typically range from ¥100,000-180,000 ($US16,000 - 28,000), with annual fee increases of around 15-20%. Lower tuition fees are generally offered in China’s second and third tier cities - typically around ¥50,000 ($US 8,000) or less per year than first-tier city programs. Tuition for CEIBS’s part-time MBA program reached an historic high this year, coming to ¥438,000 ($US70,000) per year. This makes it one of China’s most expensive MBA programs. CEIBS has justified its increase in tuition fees in light of recent findings that 94.9% of CEIBS graduates gain employment within three months of graduation and that they earn an average annual income of ¥462,000 ($US73,000). The CEIBS case study demonstrates the clear return on investment for Chinese MBA programs.
In a similar vein, a recent survey of MBA graduates from 45 Chinese institutions conducted by Forbes Magazine found that graduates can make a return on their investment in as little as two years, and often experience an increase in post-MBA salary. A similar survey of Joint Program graduates shows a compound increase of over 25% in annual salary in the four years after graduating, with some graduates claiming that they had a 150% increase in their salary in a single year.
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MBA PROGRAM AVERAGE SALARY ($US) Peking University Guanghua School of Management $28,239
Tsinghua Economic and Finance School $28,587 China Europe International Business School (CEIBS) $39,842
Source: The Global Entrepreneurs
According to a recent report released by Quacquarelli Symonds, the number of Chinese MBA graduates employed in mainland China increased by 20% from 2011 to 2012 and is projected to climb another 35% in 2013 as more graduates return home from aboard to the booming Chinese economy. Dean of Fudan University’s School of Management, Mr Lu Xiongwen, expects in the short to medium term a 300% increase in overall MBA student numbers in China, forecasting that the annual number of MBA graduates will increase from the current rate of 50,000 per year to upwards of 150,000.
Mr Lu observed that “[China] must have at least 150,000 MBA and EMBA graduates each year to reach the same business school scale as the US. Half of the graduates from Harvard and Stanford are trained for the US, and the other half are cultivated for the rest of the world. I believe that Chinese business schools will have this scale one day, but we still have a long way to go.”
While limited enrolment sizes for Joint Programs presents certain difficulties, it is apparent that these programs can eventually
become self-sustaining for international players. For example, the Australian National University’s Joint Program with Tsinghua University in Beijing has now been operating for over 10 years and gained a firm foothold in the market.
It has been observed that students enrolling in the Australian National University/Tsinghua University Joint Program are generally older, with more experience in the workplace, especially in the public sector. The profile of its students has in fact become a selling point for the Australian National University/Tsinghua University Joint Program and has resulted in increased enrolment. Additionally, the Joint Program is taught entirely in Chinese, opening it up to a broader pool of Chinese applicants.
The more established Joint Programs - such as the SKGSB and CEIBS Joint Programs - are also focusing on building international networks for recruitment and employment, including direct recruiting, referral recruiting, training programs for teachers, student exchange programs and transnational employment and internship opportunities. These networks will continue to strengthen the standing of the Joint Programs and add value for prospective students.
Although US institutions are currently the major players in the Chinese MBA market, more and more European institutions are beginning to offer Joint Programs in China. This, together with rapid improvements in China’s Domestic Programs, is resulting in increased competition.
The Shanghai Advanced Institute of Finance (SAIF) is a telling example of the leaps and bounds being made in China’s Domestic Programs. The SAIF enjoys strong financial backing from the Shanghai Municipal Government
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Government and has set the long-term goal of leading and influencing Shanghai’s burgeoning finance industry.
Finance focused MBAs (FMBAs) have also become a hot spot for growth in recent years, with Chinese institutions heeding the call of students to be “generalist[s] as well as possessing a speciality.” For example, the Tsinghua University/Hong Kong University Joint
Program and Tianjin Economic
University/Oklahoma City University Joint Program have both tapped into the FMBA phenomenon and experienced increased enrolments as a result.
As a former Australian top tier Joint Program operator notes, “there is certainly space for confident long-term international players who are willing to offer solid, value-for-money programs that are not too-pricey and that have their own discrete niche in the market. Reflecting this sentiment, Cheung Kong Graduate School of Business (CKGSB) celebrated its 10th anniversary in 2012, hosting a ground breaking ceremony for a new campus to be located in the outskirts of Beijing.
Many Chinese institutions are now also tapping into additional and often lucrative revenue streams, such as leveraging student and alumni resources to extend their offerings to EMBA programs and short course training programs delivered offshore. For example, a one-week training program at an Ivy League university for Chinese MBA students can cost up to ¥178,000 ($US28,000).
GENERAL NEWS
POLICY
MOE Adjusts Joint Program Policies
Despite no official announcement coming from the MOE, large changes have been made in the way the government will approve extensions of the existing Joint Programs.
Previously, Joint Programs have had a validity period of five years, after which time the international institution was required to apply for a further five year extension period. However, the MOE has in 2013 only granted one year extensions to Joint Programs, leading to a dilemma where many Joint Programs are set to expire later this year.
In light of this it is believed that the MOE is planning a thorough review of the existing Joint Programs approvals process. Joint Programs that are not re-approved are set to be permanently removed, and programs that do will be able to re-apply for a further five year extension.
China’s Minister of Education Sets out Plans for the Future
On 6 September 2012, China’s Minister of Education, Mr. Yuan Guiren, released the “Guidelines on National Long- and Mid-Term Education Reform and Development”. Relevantly, Mr. Yuan announced China’s goal of attracting more foreign students to study in China with an annual target of 500,000 by 2020 (currently the total number of foreign students in China is 300,000).
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As a result, more and more Chinese institutions are seeking to recruit qualified teachers to deliver English language curriculum.
Joint Programs & Research
NORTH AMERICA
First China-US Joint Higher Education Institute to Open this Year
New York University Shanghai, the first China-US joint higher education institute, will begin admitting undergraduate students throughout 2013. Students will have a choice from one of seven majors including finance, natural science, and information and communication technology.
New York University Shanghai is a pilot program sponsored by Shanghai local government in an effort to improve the region’s international higher education capabilities. The Shanghai Municipal Government’s plan is to build 10 internship placement bases for foreign students by 2015 and plans on subsidize a number of international students to attract high calibre students.
UK & EUROPE
University of Huddersfield Opens a Joint Research Laboratory in Shanghai
The School of Computing and Engineering at the University of Huddersfield (HUD) has partnered with the University of Shanghai for Science and Technology (USST) to create a joint research laboratory in Shanghai. Priority research funding was provided by the Chinese government. The laboratory will serve as a platform for a number of China-UK collaborative research projects in the
field of precision machining. It will also serve to facilitate staff and student exchanges.
Increasing competition from European tertiary institutions
Masters courses taught in English have become increasingly popular in the European market. Scandinavian countries are leading the way, with 50% of all masters courses taught in Finland and Norway being conducted in English, and 70% of all courses in Denmark and Sweden, and 80% in Holland, being conducted in English. Continental Europe has a much lower percentage of English language instruction - in France and Germany, for example, approximately 30% of master’s courses are currently taught in English.
The EIC, one of China’s largest student visa agents in Europe, predicts a 20-30% annual increase in the number of Chinese students pursuing a master’s degree in Europe.
AUSTRALIA & NEW ZEALAND
CSC-FWF Scholarship Program
The China Scholarship Council (CSC) recently signed a cooperation agreement with the Australian Science Fund (FWF) and formed the CSC-FWF Scholarship Program. This program will fund up to 30 PhD and postdoctoral scholarships each year, selected by the CSC. Successful candidates will be eligible to stay in Australia for a maximum duration of one year. The FWF will fund the host institution admission fees for this period.
CHINESE STUDY ABROAD
Elimination of Post Study Work Visa’s in UK Will not Affect Chinese Student Applications
In an attempt to curb surging immigration levels, the UK government has recently decided to put an end to “Post Study Work Visa” previously available to international students. Though the number of UK study visas issued in 2012 decreased by 21% when compared to 2011, a spokesman from the British Council in Beijing declared that the elimination of the Post Study Work Visa will not influence the number of Chinese student applications.
One of the largest student agencies in China, New Oriental, has backed this up by saying that since the UK government’s decision to end Post Study Work Visas, it has not observed any decrease in the number of Chinese students applying to study in the UK.
Media & Promotion
Research has shown that most Chinese people, including those with advanced English language skills, tend to conduct their research in Chinese rather than English Baidu, the biggest search engine in Chinese
language, now has a market share of 70% The vast bulk of online information relating
to foreign universities is either a direct translation from the foreign university’s homepage or a translation by Chinese student recruitment agencies. Very few online translations are from foreign universities directly, or non-recruitment sources
NEWS AND VIDEO EXPOSURE OF THE
TOP 20 UNIVERSITIES WORLDWIDE
UNIVERSITY COUNTRY NEWS VIDEO Yale Univ. U.S. 1,020,000 32,791
Stanford Univ. U.S. 1,130,000 14,929
Harvard Univ. U.S. 2,500,000 14,913
Massachusetts Institute of Technology U.S. 842,000 5,934 Univ. of Oxford UK 886,000 5,656 Univ. of Cambridge UK 956,000 5,099 Columbia Univ. U.S. 418,000 3,600 Princeton Univ. U.S. 171,000 3,136 Univ. College London UK 60,900 1,979 Univ. of Michigan U.S. 88,000 1,439 Univ. of California, Berkeley U.S. 294,000 1,114 Univ. of Toronto Canada 115,000 1,132 Univ. of California, Los Angeles U.S. 268,000 1,066 Univ. of Pennsylvania U.S. 101,000 884 Univ. of Chicago U.S. 285,000 796
Cornell Univ. U.S. 111,000 791
California Institute of Technology U.S. 211,000 359 Imperial College London UK 842,000 356 Johns Hopkins Univ. U.S. 69,400 147 Zurich-Swiss Federal Institute of Technology Zurich Switzerland 103 0 6
NEWS AND VIDEO EXPOSURE OF
AUSTRALIA’S “GROUP OF EIGHT”
UNIVERSITIES
UNIVERSITY NEWS VIDEO
The Univ. of Sydney 214,000 1176
The Univ. of Queensland
70,400 552
The Univ. of Melbourne 132,000 515
The Uni . of New South Wales
38,300 406
The Australian National Univ.
125,000 176
Monash Univ. 57,600 130
The Univ. of Western Australia
24,900 57
The Univ. of Adelaide 11,000 57
Source: Collected through Baidu
MEDIA EXPOSURE OF DIFFERENT
UNIVERSITY RANKINGS IN CHINESE
MEDIA
The most popular university ranking systems in China order are:
1. Times Higher Education 2. QS World University Rankings 3. The Good University Guide 4. The Education at a Glance-OECD
Additional Data
As of February 2013, the total amount of MOE approved Chinese-foreign joint tertiary education providers was 43. At present, the total number of Chinese-foreign joint programs is 732.
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Source: MOE
The top 10 disciplines for Joint Programs
DISCIPLINE % OF TOTAL
Engineering 15.44%
Computer Science & IT 13.35%
Science 10.29%
Business Administration 9.32%
Trade & Economics 8.76%
Finance & Accounting 8.48%
Art 5.98%
Medical 5.42%
General Management 5.42%
Literature & Language 3.62%
Origin of Foreign Partner Schools
COUNTRY NO. SCHOOLS % OF TOTAL
UK 165 23.01%
US 132 18.41%
Australia 117 16.32%
Russia 89 12.41%
Canada 51 7.11%
Note: Russia’s schools are predominantly
located in Helongjiang Provinc
Degrees Provided by Joint Programs
MOE Data – Market Size
Current number of the total enrollments of undergraduates of regular HEIs: 22,317,929 Current number of total enrollments of regular
senior secondary schools: 24,388,321
Source: The Global Entrepreneurs
Data – 2013 Chinese University Rankings
RANK UNIVERSITY LOCATION
No. 1 Peking Univ. Beijing
No. 2 Tsinghua Univ. Beijing
No. 3 Fudan Univ. Shanghai
No. 4 Zhejiang Univ. Hangzhou
No. 5 Shanghai Jiaotong Univ. Shanghai
No. 6 Nanjing Univ. Nanjing
No. 7 Zhongshan Univ. Guangzhou
No. 8 Jilin Univ. Changchun
No. 9 Wuhan Univ. Wuhan
No. 10 Univ.of Science and Technology of China
Hefei
No. 11 Huazhong Univ.of Science and Technology
Wuhan
No. 12 Renmin Univ.of China Beijing
No. 13 Sichuan Univ. Chengdu
No. 14 Nankai Univ. Tianjin
No. 15 Shandong Univ. Jinan
No. 16 Beijing Normal Univ. Beijing
No. 17 Harbin Institute of Technology
Harbin
No. 18 Xi'an Jiaotong Univ. Xi'an
No. 19 Central South Univ. Changsha
No. 20 Xiamen Univ. Xiamen
Source: cuaa.net
Exhibitions & Conferences
2013 Education Exhibitions
5TH INTERNATIONAL CONFERENCE ON
INTELLIGENT HUMAN-MACHINE SYSTEMS AND CYBERNETICS
Where: Hangzhou
When: 26-27 August 2013
Sponsors: Zhejiang University and University of Bristo
9TH YUNNAN INTERNATIONAL EDUCATION EXPO
Where: Kunming
When: 26-27 October 2013
Sponsor: The Educational Bureau of Yunnan Province
CHINA EDUCATION EXPO 2013
Where: Beijing, Xi’an, Wuhan, Shanghai, Chengdu
When: November 2013
Sponsor: China Education Association for International Exchange
2ND CHINA INTERNATIONAL
SYCHOLINGUISTICS CONFERENCE Where: Fuzhou
When: 23 November 2013
Sponsor: Chinese research Society of Psycholinguistics
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