Select Committee on Treasury Written Evidence


Memorandum submitted by Universities UK

SUMMARY

  1.  The growth of the higher education sector in China and the number of Chinese students studying in the UK has had a significant effect on the UK sector. China is extremely keen to encourage international co-operation and the exchange of students.

  2.  Higher education (HE) is a lucrative export industry for the UK. The number of Chinese students studying in the UK has risen from 2,883 in 1997-98 to 32,000 in 2002-03 (17% of all international students in the UK).[17] Many of these students are self-funded and a signal of the economic growth and increasing wealth in China. They contribute around £1.14 billion to the UK economy. Overseas students as a whole provide around £10.2 billion for the UK economy, making higher education a successful and growing export industry.[18]

  3.  China is also keen to receive international students and the numbers of international students in Chinese universities has increased significantly over the last few years. According to the Chinese Ministry for Education, in 1999 there were 44,711 international students in China; in 2003 there were 77,715.

  4.  The Chinese Government have made significant increases in funding for their higher education sector. In 1998 they invested $6.7 billion in the sector; in 2001 they invested $13.6 billion. Some institutions have also introduced tuition fees. Opportunities have also developed for UK higher education institutions (HEIs) to work with their Chinese counterparts.

CHINESE STUDENTS IN UK HIGHER EDUCATION

  5.  The number of Chinese students studying in the UK is increasing rapidly. Table 1 shows the growth in numbers since 1997-98.

  6.  These students pay around £7,000 per annum in fees and the same amount in living costs. They therefore directly contribute around £448 million to the UK economy. The multiplier for spending in the higher education sector has been calculated to be 2.56, giving a total contribution of £1.14 billion to the UK economy.[19]

  7.  However, there are threats to this expanding industry. In 2003, the Home Office introduced charges for international students to extend their visas ("Leave to Remain"). These are set at £155 for applications made by post and £250 for applications made in person at Public Enquiry Offices. The Home Office is currently considering raising the charges for international students to extend their visas to nearly £500. A decision is expected in early February 2005.

  8.  Universities UK believes that these additional charges could reduce the attractiveness of the UK as a destination for international students and have an impact on the number of Chinese students coming to the UK.

Table 1
No of Chinese Students in UK Higher Education
1997-982,883
1998-994,017
1999-20006,310
2000-0112,095
2001-0220,710
2002-0332,000 *
*Provisional Figure.
Source: Higher Education Statistics Agency.

CHINESE STUDIES IN THE UK

  9.  The Higher Education Funding Council for England (HEFCE), working with a panel of experts, undertook a review of Chinese Studies in the UK in 1998. This was in response to concern, from several quarters, that provision within the UK system was not keeping pace with national needs for specialised knowledge and advice.

  10.  The Review Panel recommended to the HEFCE Board that up to £1 million a year for five years, starting in 1999-2000, be made available as special grants to selected HEIs to strengthen and expand their provision for teaching and research in Chinese studies at Masters level. The fund also supported the acquisition of library materials and the development of a national database of academic expertise in relation to China now accessible at www.cos.com.

DEVELOPMENTS IN CHINESE HIGHER EDUCATION

  11.  The Chinese higher education system is rapidly developing and reforming. There have been a number of mergers and partnerships and also a focus on staff development, teaching quality enhancement, regional university development, increasing access to higher education, improving leadership and management, and increasing institutional autonomy.

  12.  The 2003-07 Government Education Action Plan priorities focus on improving basic education and creating world-class universities in China. Projects 211 and 985 aim to establish a small number of elite universities.

  13.  There is huge potential for expansion in the Chinese system. By 2005 China aims to have 15 million students in higher education, but this will only represent around 15% of the relevant age cohort.

LINKS BETWEEN THE UK AND CHINESE HIGHER EDUCATION SECTORS

  14.  Strategic Sino-UK HE collaboration has been developing over a number of years. The Sino-UK programme of higher education collaboration started in December 1996 as a three-year project initiated by Vice-Minister Wei Yu. It has been supported at the highest levels in both countries and was extended to five years in September 1997, following the signing of a Memorandum of Understanding in Beijing, and a Memorandum in November 1999 covering both current and new activities. A further Memorandum was signed in July 2004 in China.

  15.  The aim of the programme is to contribute to the development of HE in the UK and China by learning from one another's experience, and to strengthen links and strategic collaboration. Key sponsoring organisations are the British Council (Beijing), the Ministry of Education (Beijing) and the Higher Education Funding Council for England (HEFCE). The programme has a UK national steering group which includes the Director General of the British Council, the Chief Executive of the HEFCE (Chairperson), the Director for HE from the Department for Education and Skills (DfES), and the President of Universities UK (UUK).

  16.  As mentioned above, the Chinese state-funded "Project 211" aims to develop a number of universities to the level of recognised international quality and standing by the year 2011. The UK was invited by the Chinese Ministry of Education to collaborate on projects covering key development areas of mutual strategic interest. The following areas have formed the core focus of the programme:

    —  Quality—the assessment of research and postgraduate education in China (Project A—now completed).

    —  HE management—strategic planning and management (Project B)

    —  E-collaboration—particularly academic networks, electronic libraries and developments in using technology for teaching and learning (Project C)

    —  HE and Industry links—Science parks and Intellectual Property Rights (Project D).

Strategic Management (under Project B)

  17.  The aim of this project has been to share experience of developments, tools and practices in strengthening institutional strategic planning and management, both at national and institutional levels. The 211 Project Office, the HEFCE and a selected number of UK and Chinese HEIs have focused on sharing good practice in aspects of HE strategic planning and management. The UK was also invited to observe two Project 211-funded institutional reviews.

Leadership programme (under Project B)

  18.  China has invited the UK to develop a programme of HE leadership development for prospective Chinese university leaders. This will complement the annual forum between Chinese university Presidents and UK Vice Chancellors, and build on the success of similar programmes between China and other countries. It is intended that key leaders from some of the high ranking Chinese universities will benefit from placements with participating UK university managers and leaders, and that a similar programme be designed for placements in Chinese universities for UK personnel.

E-Learning Programme (under Project C)

  19.  A range of pilot projects are operating looking into the benefits and issues of pedagogy, working cross-culturally, and of publishing and intellectual property rights. The projects will also inform the development of national policy initiatives in distance education in both countries. A joint e-Learning working group was convened in September 2001 to set the parameters for co-operation and a Memorandum of Understanding and framework for the programme was signed in May 2002.

  20.  The e-Learning programme is focussed on developing the most effective means of using the internet and related electronic technologies to deliver higher education programmes. The objectives for the programme are to the further development of ICT and the use of academic electronic networks in both countries. The project will include the development of course materials, in the selected areas, capable of being delivered through the Internet in the two countries.

JANET-CERNET Link (under Project C)

  21.  The major academic networks of China (CERNET) and the UK (JANET) have been connected by a broad band link since October 1998. The Chinese Vice-Premier and UK Prime Minister formally initiated the link in a ceremony in Beijing on 7 October 1998. The original agreement between the two organisations was for a period of three years with a review to take place in the third year of operation. This review took place in February 2001. Since the agreement, CERNET has been privatised and it is seeking extra funding support from the Chinese Ministry of Education for the contract extension. Recently, the HEFCE Chief Executive wrote to Vice-Minister Zhang to seek clarification on future options. A further joint review of the link and strategic options for the future is planned for March 2003.

Intellectual Property Rights (under Project D)

  22.  With China's accession to World Trade Organisation membership, the issue of intellectual property rights (IPR) has become even more relevant. In both countries it is an integral part of the process of technology transfer from universities into the national economy. At the forum of university presidents and vice chancellors in 2001 it was agreed that both sides would investigate ways of spreading knowledge and good practice. It is intended that IPR will be a focus at the annual VCs' and presidents' forum to be held in May 2003. A report comparing current IPR practice in each country will be discussed.

Chinese University Presidents'—UK Vice Chancellors' Forum (all Projects)

  23.  This annual forum, which is hosted alternately by China and the UK, provides on ongoing opportunity for the review and discussion of key policy interests, new developments and issues and future activities. It is attended by senior policy makers as well as heads of institutions of both countries. Each year Chinese/UK Ministers of Education have received visiting delegations.

INSTITUTIONAL LINKS

  24.  There are a large number of links between universities in China and the UK in many subject areas. Universities UK would be happy to provide examples to the Committee. A sample of the links can be found in the publication produced by HEFCE, British Council and Universities UK in November 2003 called Sharing A Vision and available from HEFCE.

CONCLUSION

  25.  The Chinese HE system is expanding and the number of Chinese students rapidly increasing. These provide economic opportunities and threats for the UK. Universities are developing close managerial and technological links with Chinese institutions, and large numbers of Chinese students are studying in the UK bringing social, cultural and economic benefits. However, the developing Chinese HE system is contributing to an increasingly competitive world market for international students and academics.

  26.  The Chinese Government is investing heavily in human capital through higher education in order to boost economic development. Further investment in UK higher education is necessary to ensure that the UK can compete at the high-skill end of the international labour market.

24 January 2005





17   Higher Education Statistics Agency; 2002-03 is a provisional figure. Back

18   The global value of education and training exports to the UK economy, produced by the British Council, DfES and UK Trade and Investment and carried out by Professor Geraint Jones from Lancaster University Management School. Back

19   The Impact of Higher Education Institutions on the UK Economy, Universities UK Report, 2002, p 27. Back


 
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