Joint MBA Programs in China

SAMPLE ISSUE July 2013 IN THIS ISSUE Feature Topic 1 Joint MBA Programs in China 50,000 Chinese MBA a Bright Future? 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 [China] must have at least 150,000 A broader problem, however, lies at MBA and EMBA graduates each year to the heart of China s MBA landscape. reach the same business school scale A as the US. Half of the graduates from Business Week of 170 HR personnel Harvard and Stanford are trained for the from US, and the other half are cultivated for corporations found that only 20% of the rest of the world. I believe that respondents Chinese business schools will have this Chinese-educated scale one day, but we still have a long favourably. This presents a clear need way to go. for Chinese MBAs to increase their Mr Lu Xiongwen - Dean of Fudan University School of Management recent Shanghai Media & Promotion 6 Additional Data 7 Chinese Exhibitions and range of were by multinational likely MBA to view graduates international standing - and one clear players opens joint research lab in a conducted way forward is for more international recruiting in 2013 University of Huddersfield survey It has been over 20 years since the first to partner with Chinese institutions. Chinese MBA programs were officially approved by the country s Ministry of MBAs are delivered in China in one of Education (MOE). In this time more than three ways: Domestic Programs; Joint 140,000 students have graduated from (International) China s growing number of MBA programs, Transnational Programs. Joint and which Transnational Programs both require now number more than 200 Programs; and nationwide. MOE approval. MBA recruitment in China peaked in 2008 According to 2013 international MBA CONTACT US but experienced a slow down following the rankings published by the Financial +86-10-8586 6386 / 87 Global Financial Crisis. Secretary-General Times, only three of China s Joint edu@bjconsultinggroup.com of Employment Programs are currently ranked in the www.bjconsultinggroup.com Promotion Committee, Mr Guan Changhai, top 100. These include the Chinese recently reported that while not yet back at Europe International Business School 2008 levels, MBA recruitment in China is (ranked again on the rise and, typical of China, is Guanghua School of Management rising quickly. (ranked 66, and Fudan University s Conferences 10 the Beijing Graduate th 15 ), Peking University s th) th School of Management (ranked 89 ) 2013 Beijing Consulting Group. All Rights Reserved. 1

Other high ranking MBA programs in Greater China are three Hong Kong providers; UST Business School (ranked 8 th ), the Chinese University of Hong Kong Business School (ranked 27 th ) and the University of Hong Kong (ranked 31 st ). 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. 2

MBA PROGRAM AVERAGE SALARY ($US) Peking University $28,239 Guanghua School of Management Tsinghua Economic and $28,587 Finance School China Europe $39,842 International Business School (CEIBS) 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 3

Government and has set the long-term goal of leading and influencing Shanghai s burgeoning GENERAL NEWS finance industry. POLICY Finance focused MBAs (FMBAs) have also MOE Adjusts Joint Program Policies become a hot spot for growth in recent years, with Chinese institutions heeding the call of Despite no official announcement coming from as the MOE, large changes have been made in the possessing a speciality. For example, the way the government will approve extensions of Tsinghua University/Hong Kong University Joint the existing Joint Programs. students to Program be generalist[s] and as Tianjin well Economic Joint Previously, Joint Programs have had a validity Program have both tapped into the FMBA period of five years, after which time the phenomenon international institution was required to apply for University/Oklahoma and City University experienced increased a further five year extension period. However, enrolments as a result. the MOE has in 2013 only granted one year As a former Australian top tier Joint Program extensions to Joint Programs, leading to a operator notes, there is certainly space for dilemma where many Joint Programs are set to confident long-term international players who are expire later this year. willing to offer solid, value-for-money programs that are not too-pricey and that have their own In light of this it is believed that the MOE is discrete niche in the market. Reflecting this planning a thorough review of the existing Joint sentiment, Cheung Kong Graduate School of Programs approvals process. Joint Programs Business (CKGSB) celebrated its th 10 that are not re-approved are set to be anniversary in 2012, hosting a ground breaking permanently removed, and programs that do will ceremony for a new campus to be located in the be able to re-apply for a further five year outskirts of Beijing. extension. Many Chinese institutions are now also tapping China s Minister of Education Sets out Plans into additional and often lucrative revenue for the Future streams, such as leveraging student and alumni resources to extend their offerings to EMBA On 6 September 2012, China s Minister of programs and short course training programs Education, Mr. Yuan Guiren, released the delivered offshore. For example, a one-week Guidelines on National Long- and Mid-Term training program at an Ivy League university for Education Chinese MBA students can cost up to 178,000 Relevantly, Mr. Yuan announced China s goal of ($US28,000). attracting more foreign students to study in Reform and Development. China with an annual target of 500,000 by 2020 (currently the total number of foreign students in China is 300,000). 4

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. 5

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 universities sources 6 directly, are or from foreign non-recruitment NEWS AND VIDEO EXPOSURE OF THE TOP 20 UNIVERSITIES WORLDWIDE UNIVERSITY COUNTRY NEWS VIDEO Yale Univ. Stanford Univ. Harvard Univ. Massachusetts Institute of Technology Oxford Cambridge Columbia Univ. Princeton Univ. Univ. College London Michigan California, Berkeley Toronto California, Los Angeles Pennsylvania Chicago Cornell Univ. California Institute of Technology Imperial College London Johns Hopkins Univ. Zurich-Swiss Federal Institute of Technology Zurich 1,020,000 1,130,000 2,500,000 842,000 32,791 14,929 14,913 5,934 UK UK 886,000 956,000 5,656 5,099 418,000 3,600 171,000 3,136 UK 60,900 1,979 88,000 1,439 294,000 1,114 Canada 115,000 1,132 268,000 1,066 101,000 884 285,000 796 111,000 211,000 791 359 UK 842,000 356 69,400 147 Switzerland 103 0

NEWS AND VIDEO EXPOSURE OF AUSTRALIA S GROUP OF EIGHT UNIVERSITIES UNIVERSITY NEWS VIDEO The Sydney 214,000 1176 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. The 70,400 552 Queensland The Melbourne 132,000 515 The Uni. of New South 38,300 406 Wales The Australian National 125,000 176 Univ. Monash Univ. 57,600 130 The Western 24,900 57 Australia The 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 7

. Degrees Provided by Joint Programs 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 8 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

Data 2013 Chinese University Rankings Source: The Global Entrepreneurs 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 Hefei Technology of China No. 11 Huazhong Univ.of Wuhan Science and Technology 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 Harbin Technology No. 18 Xi'an Jiaotong Univ. Xi'an No. 19 Central South Univ. Changsha No. 20 Xiamen Univ. Xiamen Source: cuaa.net 9

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