A Cheated Future
How Study Abroad Agencies in China Give Students False Hope of A Future Abroad
Early 2000s

Diploma mill, US visa and the Massive Market in 2000s

“The companies are prospering by exploiting two intersecting interests: the growing demand by Chinese nationals to study overseas, and the desire by U.S. colleges to profit from foreign students willing to pay full tuition” -- Reuters.

How Big the Cake is


Since 1987, there has been a steady growth in the number of Chinese students going abroad. 100,000 students went overseas that year .

In 2009, one year after the Beijing Olympics, there was a 27.5 percent increase in the number of students leaving China, the biggest jump since 1987,according to the data of the Ministry of Education of China.

Two years ago, there were more than 0.5 million Chinese young people seeking foreign education outside China’s great wall of information control. Above them, more than 90 per cent were self-funded students.

(Caption: Data of Chinese students study abroad each year. The growth rate is general lower than 2000s while the total number keeps incresing in the past five years.)

As Ms YS Zhang, a teacher at the best high school in Yunnan province of China, said, averagely there are five students in a 60-student’s class want to go abroad for future education, three of them would eventually go. This number maybe different in different schools and cities.

The increase in the number of students going overseas correlates with the increasing wealth of China’s middle class families.

A 2014 report from Tencent education shows that the agency fee at that time for an applicant to apply to an oversea institution was 9000 to 60,000 RMB, depending on the country and the world ranking of the target universities.

The top three choices for Chinese students were the US, UK and Australia. The agency fees in 2014 were 42,000, 13,000 and 10,000 RMB respectively. According to the World Bank’s list of gross national income per capita (GNI) in 2015, China’s average annual income was only 7,820 US dollars, approximately 50,000 RMB.

Apart from the growing agency fees, a family would need to pay high tuition fees, accommodation and other daily expenses to support their kids overseas. Many of the popular countries, such as the US, do not allow oversea students to work more than 20 hours per week.

According to the U.S. College Board, a non-profit organization on higher education, a foreign student in 2014/15 needed to spend nearly 260,000 RMB a year in order to study at a public university in the US. For a postgraduate, without a scholarship, the cost was 103,000 to 344,000 RMB per year.

(Caption: Numbers of self-funded Chinese students study abroad each year between 200 tp 2016. And their percentage among all the Chinese students studying abroad each year.)

This army of oversea students, most of which are self-funded student, has brought a great number of direct profit to the target countries.

Take the US for example. There are more overseas students from China in the US than from any other country. In 2009, there were more than 100,000 Chinese students, according to Open Doors, an institution supported by the Bureau of Education and Cultural Affairs of the U.S Department of State.

In the academic year of 2015/16, Chinese student in the US has contributed

11.43 billion USD

to the country’s economy, said Open Data 2016’s report.

Today, there are twice as many Chinese students in the US than those from the second largest country of the internationa student origin: India, and the number is growing.

(Caption: 2016 Opendoors' report on the origins of the international students that are studying in the US.)

Insider China, the great profit and expanding needs of the oversea education market has motivated a whole chain of relative consuming (as showed on the graph below). The market scale and economic benefit that this chain delivered were as much as 25000 billion RMB in 2012 along, as analysed by Ernst & Young (EY), one of the “Big Four” accounting companies.

The market of study-abroad agencies inside China could be seen as parallel with the number of Chinese study-abroad students, said the EY report. The market boomed since 2001, increased dramatically especially during 2008 to 2012.

In the future, as the internet and mobile become more and more common, the threshold of oversea education due to information asymmetry would be lower. The growth rate of agencies and the market would be less and less, said the EY report.

Breaking the Diploma Mill


Since 2003, cases of people who fell victim to fraud committed by these study-abroad agencies has raised public attention.

China Central Television (CCTV) reported on several common tricks used by these agencies. Some lie about their certification, what they could do for their customers ability and the situation overseas to unknowing clients. They would pocket the customers’ money, shirk their responsibilities when caught.

“These institution and individuals took advantage of Chinese parents’ aspirations for their children and their blind trust on foreign-related companies, in order to make profit unethically and organize illegal activities,” said the report.

In response, the Ministry of Education launched the website of Foreign - related Education Information Supervision Network (FE Network) on 2003. The network lists of legal foreign education institutions and study-abroad agencies that have gained the recognition of the Chinese government.

The website also publishes national policies updates, important events and notifications related to foreign education.

Every study-abroad related agency in the country needs to submit annual report about its business situation and future plans to local education and policy departments.

Failing to do so or if the report is problematic, the State Administration for Industry and Commerce has the right to force the agencies to rectify and reform until they meet the requirements.

Improved regulations and policies plus a rising middle class in China have meant more and more students are able to study overseas.This, in turn, led to increasing competition to get into good schools.

Some agencies try to convince students that they should first study so-called preparatory courses in the countries they wanted to go to before applying to universities.

“Some classmates of mine chose to study at community colleges first in the U.S., then apply to other universities after that,” said Shan Tongxun, a girl from Beijing who is now studying in New York.

But some students soon realise that shelling out a lot of money to the agencies was no guarantee for places at top universities.

“There are tough criteria such as high scores in the SAT and other academic evaluation,” said Shan.

Coco Ren, a school mate of Shan in Beijing, agreed.“Some hard working students do end up in good universities after community college,” Coco said.

Some though are misguided in the approach to getting an oversea education. In some cases, the diplomas they were awarded turned out to be fake, or invalid.

(Caption: Tang Jun on the cover of a Chinese magazine titled of “The investigation of diplomas in the U.S.: the loss of reputation of a businessman”.)
Tang Jun on the cover of a Chinese magazine titled of “The investigation of diplomas in the U.S.: the loss of reputation of a businessman

Tang Jun, for example, became notorious in 2010. He was the founder of a consultant company who claimed to have worked for some big companies such as MicroSoft. Tang was accused of lying about going to had The California Institute of Technology in his book by Fang Zhouzi, a scientific writer who is well known for his campaigns against various pseudoscience and fraud in China.

Also, the school where he gained his doctorate degree, Pacific Western University (now California Miramar University), was a “diploma mill” that’s not qualified to issue doctorates.

According to Chicago Sun-Times, Pacific Western University’s license was suspended between 1994 to 1996, yet Tang claimed that he gained the degree in 1995.


Tang and the authenticity of his diplomas stirred a heated debate. In 2011, Tang admitted in an interview that he bought a diploma from Pacific Western University for $3000 U.S.

“That was because I felt shameful that I didn’t have a doctorate degree,” said Tang in the interview, “I have to say it was out of vanity.”

The scandal of Tang Jun’s fake diploma rang alarm bells for these diploma mills. The Ministry of Education then published a list of unqualified universities which study-abroad agencies tried to cheat their customers into attending.

Here’s the USA part of the list:

  • Dickinson State University
  • California American University
  • Pacific Western University (now California Miramar University)
  • Armstrong University
  • Nation University
  • Kennedy-Western University (now Warren National University)
  • Honolulu University
  • International East-West University
  • Barrington University (now University of Atlanta)

For students who wanted to go abroad for just a short period of time, usually within six months, these diploma mills were easy to get admitted into. Graduation is guaranteed. Their names sound bona fide and often good enough to lure students with poor academic performance to fall victim.

“Some small agencies would get kickbacks for each student they send to these diploma mills,” said Ren. “They (those schools) need students, the students need a diploma and the agencies need money”.

Mr Shui, co-founder of a study-abroad agency, Hiture, agreed. “ The Ministry of Education listed the recognised agencies in the FE Network,. These are the ones that can really recruit students in China for service for universities overseas.”

For universities which have difficulties recruiting students, these study-abroad agencies are a good help.

“As long as you have the money and a reasonable score,
you can get in those universities”

, said Mr Shui. “The Ministry’s regulation in 1999 cut off those agencies that cooperate with foreign ‘diploma mills’ effectively.”’

In 2014, the Ministry of Education released a policy to maintain the quality of Chinese students’ oversea education.

According to FE Network, students who want to go abroad need to get a certificate from the Chinese embassy at the country where they studied in order to prove the authenticity of their foreign diplomas.

“The so-called ‘diploma’ from diploma mills is nothing but
a piece of waste paper”

, said in a notification of FE Network.

In 2015, a gang of five people, who sold fake diplomas to Chinese people for between 100,000 and 200,000 RMB, were caught by the police.

One of the defendants admitted in the court that she faked the registration of a non-existent university with an American partner. In fact, there was no staff or teaching facilities. It was not recognized by the U.S. or China, but it could still “issue” postgraduate and phD diplomas to those who paid for a fake diploma. (Read the original report [in Chinese])

Government regulations in recent years have raised public awareness of “fake diplomas” and “agencies”. But the advertisements for these agencies are still everywhere.

On an international book-reading online community, Goodreads, a one post in Chinese claimed it could provide fake diploma and transcript for students in need.

The company said that they have experience in providing certificates from famous universities in Australia, Canada, UK, New Zealand, U.S., France and Germany. An Australian public university, Southern Cross University, was specially named in the title.

The post stated that it aims to help Chinese students who “need a graduation certificate when going home during the Lunar New Year”, who “fail on too many subjects and need a certificate to find jobs” and more.

(Caption: screenshot of the fake diploma advertisement on Goodreads)

With a WeChat number posted as contact, the company claimed its location to be at Hong Kong.

At the same time, hot destination for study-abroad have also strengthened their control over “titular universities” and their students.

In 2016, a Chinese girl were repatriated from the US just because she was found by the customs that she had told her friend “I don’t like this school, it’s just a title” on a chatting app.

US custom said that they suspected the student identity of this girl.

The Struggle of Visa


Although the very first group of education institutions in Mainland China was established as early as in the 1990s, the real market of study-abroad agent and consulting business didn’t start to fly till 2005, before which time the study-abroad services in China were mainly focus on destinations like Canada, the United Kingdom, Australia and other European countries.

The difficulty of getting a US student visa before 2005 has to account for that.

At the beginning of this industry in 1990s, most education institutions were focus on English teaching and testing taking skills. As the gate of international universities just opened, professional English training and experience sharing for TOEFL, GRE tests were treasury resources for millions of Chinese students who dreamt of going to a better place.

However, since “911” territory attack in 2001, US, as a main target that Chinese students would apply, tightened the visa policies.

As a result, even that more and more Chinese students, by virtue of of their hardworking and assiduousness, got cheerful results from the universities they applied, still failed to go abroad because of the strict rules in visa examination.

According to a news release for Consulate-General of the People’s Republic of China in Houston on September of 2004, the visa reject rate for Chinese applicants was as high as 30 to 65 per cent at that time.

Before 2005, 95 per cent of the visa applicants were required to come for fingerprint and an interview in the embassy.

At the same time, each visa officer had only averagely 3 minutes to determine whether this person could go to the US due to the high volume of applicants. Once the officer came to the conclusion that this person had the inclination to stay in US, the application would be rejected.

A lot of Chinese people then were the “victim” of the strict visa rule. Mr Zhao, the co-founder of study-abroad agency Hiture, were rejected for three times before 2005, he ended up going to Singapore instead of the US for further education.

“Even a full scholarship from Ivy League can’t guarantee you a visa to the US”

,said another co-founder of Hiture, Mr Shui: “let alone other universities’ admission offers.”

“There were a visa officer in US Embassy in Beijing at that time, he was called ‘full-scholarship killer’. The normal way he rejected students’ visa was that, he’d asked how many schools did you get the scholarship, why you choose this one over others at first; then he’d claim that you only want to go to the US because this school offers you scholarship. As a result, he would say that you can earn more in US, thus you have the tendency to immigrant,” said Mr Shui.

Yu Minhong, the founder of New Oriental Education, which is the biggest English education institution now in China, also experienced the failure of visa application for years. Eventually he gave up and start the business of English teaching in China, which led him to today’s success.

In response to the market need, education institutions before 2005 begun to offer help on visa application. They provide model visa interview, materials checking and other relative trainings.

Based on various students’ visa application experience, one of the famous study-agent today, Taisha.org, even concluded and published an online guidance, named “the Art of Visa” in 2006 in order to help Chinese people better understanding the process of application and what they can do to take control of the interview conversation when facing the visa officer.

Numerous fake documents in the application profiles and a lot of illegal Chinese immigrants inside the border of US were also part of the reason why the applications were handled, said an anonymous visa officer said in the news release in 2005.


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