Education export to China Lecture Series I:

Opportunities, challenges and successful scenarios

Seppo Hölttö, Professor Yuzhuo Cai ,University of Lecuturer, Adjunct Professor

Chinese Education Research and Exchange Centre/Higher Education Group

School of Management, University of Tampere

5th January 2012, Vapriikki, Tampere

Changes of internationalisation of education in Finland

China as a prioritised export destination Opportunities Challenges Successful scenarios & potential risks Future topics

Main topics

Changes of internationalisation of education in Finland

1) traditional individual based mobility, 2) internationalisation based on bilateral

institutional agreements, 3) programme based internationalisation 4) internationalisation based on institutional

and disciplinary networks 5) market oriented internationalisation.

Models of internationalisation of education in Finland

Emergence of knowledge based society Growing importance of knowledge in

production (as a resource and product) Globalisation National and supra-national policies

Internationalisation Importance of HE in other national and regional

policies (national competitiveness) Internationalisation of HE and universities

Drivers for change

Initiated in Higher education sector Amendments to both the Universities Act

(1997/645) and the Polytechnics Act (2003/351)—made to order education

Universities Act (2009)— tuition fee programmes Selected Master programmes Made to order education

Strategy for the Internationalisation of Higher Education Institutions (2009-2015)

A move towards education export

Extend to all sectors of Finnish education Education Export Strategy (2009) Future Learning Finland (2010)

Funded by three Ministries Coordinated by Finpro

A move towards education export

Linked to the University Reform (New legal status of universities)

International Master programmes National and European (Erasmus Mundus)

Professional continuing education programmes

Reforms of international administration (new models of internationalisation)

Need for institutional capacity building

What we mean by educational markets? Which kinds of markets we want to operate in? Which kinds of products we want to offer to the

markets? Which kinds of capacity we need to operate in

the selected segments of markets?

QUESTIONS

China as an prioritised export destination

China is considered as an important international actor and as a partner to Finland and EU

Outside EU, China is the second largest trader partner of Finland after Russia

8 Billion Euros Finnish investment in China 340 Finnish offices, subsidiaries and joint-

venture in China

China Action Plan (MOF, 2010)

Development of expertise on Asia and co-operation with Asian countries are priorities of internationalisation.

Many rapidly developing Asian countries offer great potential and it is important for Finnish higher education institutions, research institutions, the cultural field and other parties to aim to take advantage of this potential in their international co-operation as well.

Regionally, operations are specifically targeted at countries in East and South Asia, where the attraction of China, Japan, South Korea and India is internationally strong.

Asia Action Programme (MOE, 2006)

The rapid economic growth in populous fast developing countries, such as China and India, and their engagement with the global economy affect the direction that internationalisation takes.

China and many other rapidly growing economies are increasing their investment in higher education, research and innovation. The relative weight of Finland as a higher education and science country is diminishing.

Strategies for Internationalisation (MOE, 2009)

Opportunities

Opportunities in terms of increasing market demand

Opportunities in terms of policy changes in China

Opportunities in terms of Finland’s international image

Opportunities in terms of benefits for Finnish business sector

What opportunities?

Chinese degree students in Finland

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

500

1000

1500

2000

2500

China is the largest student source country, accounting for 18.5% of all students -studying abroad in the OECD area (OECD 2010)

Chinese students represent the largest international student cohort in Finland (CIMO 2010)

Biggest student source country

Foreign students in Finland in 2010

China Russia Nigeria Nepal Estonia Vietnam Sweden Germany India Bangladesh0

500

1000

1500

2000

2500

Only 0,81% of Chinese students pursuing studies abroad come to Finland (2095 against 285,000)

In addition to young students, there is a growing demand for training adults (officials, managers, professionals)

Big potential for revenue

To support students and scholars studying abroad,

To encourage them to return to China after their completion of studies, and

To guarantee them the freedom of coming and going.

The principles set by the Central Communist Party Committee in 1992

Commitment to GATS: four models New regulations on foreign educational

provision in China

China’s joining WTO

Mode 1: Cross-border supply Refers to the provision of distance educational

courses and services. No commitment to cross-border supply in terms of

either market access or national treatment. Mode 2: Consumption abroad

Refers to citizens of one country studying in another country. For this mode, China has imposed no limitations either on market access or national treatment.

Model 1 & 2

Mode 3: Commercial presence Refers primarily to the educational institutions from one

country in another country to set up schools and other educational institutions that are engaged in education and related services.

According to China’s commitment, foreign education institutions are not allowed to independently set up branches and other organisations.

Mode 4: Presence of natural persons Refers primarily to the citizens of one country in another

country who are engaged in professional teaching and training.

There is a limitation on market access with respect to the movement of people: qualified foreign individuals may enter China to provide education services when invited or employed by Chinese education institutions.

Model 3 & 4

the Regulations on Chinese-foreign Cooperation in Running Schools issued by the State Council in 2003

CFCRS: “the activities of the cooperation between foreign educational institutions and Chinese educational institutions in establishing educational institutions within the territory of China to provide education service mainly to Chinese citizens”

Domestic legislation

Success of Finland in PISA Chinese do look Finland as a good example of

basic education and try to learn Finnish lessons.

Also good image in other areas, such as clean technology, ICT, public administration, etc. More Chinese officials and professionals trend

to take training courses in Finland.

Image of Finland

300 companies 30,000 employees Need qualified labour forces

Existing Finnish companies in China

Training Chinese learners in Finland as a direct promotion of the local tourist industry.

Promoting Finnish business through educating and influencing Chinese governmental officers and company leaders who are in Finnish training programmes.

Building partnership between Finnish Companies and Chinese Universities through Finnish HEIs.

Educating Chinese talents for Finnish companies’ business operations in China and even the labour market in Finland.

Opportunities for business sector

Challenges

Challenges at home Not ready for education export Lack of clear strategy in implementation

Challenges in the market place Image of Finland is not well-perceived in China A difficult market

What challenges?

In education, research and culture, Finland has a wide range of relations with Japanese, Chinese, India and Korean organisations. However, seen as a whole they are fairly dispersed. Relations with Asian countries seems to be lacking in coordination both at home and among units operating in Asian countries.

As the countries in question are extremely large in comparison with Finland, the presence and contacts of one single Finnish organisation there will not achieve the desired effect.

Perhaps the most critical shortcoming is, however, that the aims of different organisations with regard to cooperation with Asian countries often seem to be rather unfocused.

General review by MOE (2007)

Traditional academic values Lack of experience on education export Lack of knowledge on targeting market Lack of commitment Lack of investment (and even the financial

framework for investment in education export) Lack of coordination Restrictions by Finnish legislation

Readiness of education export

The number of international degree students will be considerably increased

The international education will be developed as an export industry (MOE, 2009)

Objective of internationalisation strategy

On the one hand, charging tuition fees from some international students would not be likely to generate much additional revenue until international students made up a substantial proportion of the total student population .

On the other hand, as the majority of current international students chose to study in Finland because of its free education, the international student number may drop after tuition fees are introduced

Dilemma 1

Full-cost fees was introduced in 1980 in UK Financial pressure drive British HEIs to go out

into the world of market In Finland, the Government does not want to

give much pressure to HEIs, but expects the HEIs are motived to do

education export

Dilemma 2

The Government expects the education export can be the second NOKIA to boost the economy of Finland, but

has not considered or stressed the importance of investment.

Dilemma 3

What should be expected from international students?

How much should be charged for tuition fees?

Why do students study in a host country? What type of education export should be the

priority?

Less attention to key issues

In general, Finland (higher education in particular) is not well-known in China

Image of Finland

Yes by theory. But in practice quality can hardly be

measured What affect (Chinese) students choice in

pursuing foreign education? University ranking/reputation Employment prospect

Quality bring success?

“the opportunities are there, but the entry costs will be high” (Adams, 2007, p. 414)

“Institutional cooperation (in China) is not established over night …it requires a substantial amount of planning, exchange and commitment”. (NESO, 2010, p. 37):

Difficult in entry

Reflection from Finnish business operations in China Mainly doing business with foreigners though

being located in China Educationalists have less knowledge and

experience in doing business in China

Difficult in networking and trust building

What written by policy documents vs. what happened in practice

The languages need to be interpreted not only linguistically but also culturally

Difficult to access to statistics Diversity and variety

Difficult in understanding

How to maintain network or relationship (Guanxi)

Trust issue (different way of building trust) Finns people normally build transaction first and, it

successful, a relationship/trust will ensure. Chinese believe that perspective partners should

build a relationship/trust first, if successful, transactions or effective activities will follow.

Lack of competent stuff to work in negotiation and running business

Difficult in operation

Planning China: fast decision and expect quick

response, short term plan, plan is abstract Finland: slow decision and take a long time to

respond, long term plan, plan is concrete Contract

cost based on per person cost based on total programme

Conflicts in bureaucratic procedures

Successful scenarios

Synergy between industry education export and industry education export

Focus on a few areas which Finland has special expertise and reputation Academic expertise Development expertise

Develop offshore education in cooperation with local partners in China

Traditional model of student studying abroad will remain but the emphasis tend to attracting most gifted students.

Models of education export

Efforts towards cooperation and one Finnish brand

More investment on product development and marketing

Marketing

More studies on education export and targeting market (identifying future tendencies)

Utilise experts, alumni and local partners Partnership with Chinese universities and

schools Effective national coordination on education

export University, UAS, School cooperation in

Finland

Capacity building

Risks

Poor quality programmes may ruin the reputation of the whole Finnish education

Rush to education export with irrelevant curricula to local market needs

Find the wrong (niche) markets Find the wrong partners Neglect experts’ role

Chinese education reforms and trends 13-15 8th Feb

Relevant policies and reforms in China and implications for foreign educational providers 13-15 15th March

Marketing and branding Finnish education in China 13-15 18th April

Places will be in the University of Tampere premise

Future lectures

Cai, Y. (2005). The future of European higher educating from a Chinese perspective--the internationalisation dimension. In J. Enders, J. File, J. Huisman & D. Westerheijden (Eds.), The European higher education and research landscape 2020: Scenarios and strategic debates (pp. 191-202). Enschede, the Netherlands: CHEPS.

Cai, Y., & Hölttä, S. (2006). Kiina ja suomalainen korkeakoulupolitiika. In T. Aarrevaara & J. Herranen (Eds.), Mikä meitä ohjaa? (pp. 85-99). Jyväskylä: Koulutuksen Tutkimuslaitos, Jyväskylän Yliopisto.

Hölttä, S., Pekkola, E., & Cai, Y. (2009). Training Chinese administrative officials in Finland and its relevance to Finnish "China strategies". Tiedepolitiikka (Science Policy), 2009(3), 29-42.

Relevant references

Cai, Y. (2011a). Chinese higher education reforms and tendencies: Implications for Norwegian higher education in cooperating with China. SIU Report Series, Vol. 4. K. G. Pettersen (Ed.) Retrieved from http://www.siu.no/nor/content/download/7700/79536/file/Chinese%20higher%20education%20reforms%20and%20tendencies%20-%20til%20publisering.pdf

Cai, Y. (2011b). Cross-border higher education in China and its implications for Finland. In Y. Cai & J. Kivistö (Eds.), Higher education reforms in Finland and China: Experiences and challenges in post-massification era (pp. 245-260). Tampere: Tampere University Press.

Cai, Y., Hölttä, S., & Lindholm, N. (2011, 10-21 June). Towards sino-Finland joint venture school. Paper presented at the Standardising Chinese-foregn Cooperation in Running School, excising Administration According to Law and Promoting Sustainable Development, Xiamen.

Relevant references

Cai, Y. (In press-a). Employment prospects of Finnish-educated Chinese graduates in Finnish companies in China—employers' perspectives. Tampere: School of Management, University of Tampere.

Cai, Y. (In press-b). International graduates from Finland: Do they satisfy the needs of Finnish employers abroad? Journal of Research in International Education.

Cai, Y., Hölttä, S., & Kivistö, J. (in Press). Finnish higher education institutions as exporters of education--are they ready? In S. Ahola & D. Hoffman (Eds.), CHRIF year book 2010.

Cai, Y., & Kivistö, J. (in press). Tuition fees for international students in Finland—where to go from here? Journal of Studies in International Education.

Relevant references

Seppo Hölttä, Director Yuzhuo Cai, Research Coordinator Cuihong Jin-Muranen, Secretary

Email: firstname.lastname@uta.fi www.uta.fi/jkk/cerec

Contact at CEREC