Education market overview
For many years, China has remained Australia’s top international education source market. As of mid-2025, over 142,000 Chinese students are studying in Australia. Of these, approximately 43% have chosen New South Wales (NSW) as their destination.
China’s economy recovery is progressing slowly. According to the OECD, China’s GDP growth is projected to be 4.7% in 2025, down from 5.4% in early 2023. Analysts cite persistent structural challenges, including youth unemployment and a sluggish property market, which may delay China’s trajectory toward becoming the world’s largest economy by 2035.
The demand on international education still remains. The number of Chinese students going abroad for study is expected to reach 610,000 in 2025, with Australia remaining one of the top destinations. However, China’s shrinking middle-class wealth has made families more cost-conscious than ever. This drives a greater interest amongst Chinese families in transnational education programs/institutions in market.
Employability continues to be a top concern for Chinese families, driving interest in postgraduate studies abroad. The youth unemployment rate for ages 16–24 stood at 14.5% in June 2025, down from a peak of 21.3% in 2023.
Vocational education in China is undergoing significant reform. The government has launched new initiatives to modernize the sector, including 300 national practice centers and 30 new vocational standards by 2025. These efforts aim to address skills shortages in key industries such as aerospace, advanced manufacturing, and digital infrastructure.
While Sydney continues to be a popular study destination for China, Study NSW is actively working to diversify Chinese student flows to other regions in NSW and promote broader engagement across vocational, school, and higher education sectors.
Meet Lily Wu, Director – International Education, China
Prior to her current position as the International Education Director of the NSW Government Trade and Investment Office in China, Lily was the education manager of Austrade Shanghai. Over the past 12 years, she has worked diligently to promote the value of Australian international education in China.
While working with Austrade, Lily served in multiple roles including Acting Senior Education Manager - which involved leading the whole Austrade China Education Team and the sub-team leader in Marketing and Promotion, External Stakeholder Engagement and Market Intelligence.
Lily has a deep connection with Australia and hopes to continue her contribution in her current role to bring the people of NSW and China together for long-term collaboration and friendship in the international education sector.
Submit an enquiry to contact Lily.
