By Liz Lee and Larissa Liao

BEIJING (Reuters) -When 25-year-old biology student Yao's PhD program enrollment was deferred due to funding cuts at her U.S. university, she joined a growing list of Chinese students exploring other destinations.

Visa revocations and university funding cuts by the administration of U.S. President Donald Trump have become a source of anxiety for international students. Those from China face additional challenges due to Washington's trade war with Beijing and the increasing vilification of Chinese citizens, students and industry insiders said.

"I used to think politics was far away from me, but this year I really felt the impact of politics on international students," Chicago-based Yao said, declining to give the name of her prospective university.

China had accounted for the biggest international student body in the U.S. for 15 years, until it was overtaken by India last year. The economic impact of Chinese students on the American economy was $14.3 billion in 2023, according to Open Doors data.

But within the United States, the community has been portrayed as a national security threat - likened to spies sent across by the Chinese Communist Party - and threatened with proposed legislation that could bar them from universities.

Reuters spoke to 15 Chinese students, eight of whom were in the U.S., who said the compounded issues have spiked safety concerns and intensified financial constraints, forcing them to rethink their American dream.

Since Trump returned to the White House, more than 4,700 students have been deleted from a U.S. immigration database, making them vulnerable to deportation.

Chinese students have accounted for 14% of 327 visa revocation reports collected so far by the American Immigration Lawyers Association.

BRANDED SPIES

Last month, the U.S. House's select committee on China sent letters to six universities requesting information on enrollment policies for Chinese students in advanced STEM programs, and questioning their involvement in federally funded research.

Committee chairman John Moolenaar wrote America's student visa system had become "a Trojan horse for Beijing" that provided unrestricted access to top research institutions and posed a national security threat.

China's foreign ministry urged the U.S. to "stop brandishing national security as a false pretext" for discriminatory and restrictive measures targeting its students.

Republicans in the U.S. House of Representatives have also proposed the "Stop Chinese Communist Prying by Vindicating Intellectual Safeguards in Academia Act" that would halt student visas for Chinese nationals.

New York-based non-profit Committee of 100, a grouping of prominent Chinese Americans, has said the bill betrays American values and weakens the U.S.'s leadership in science, technology and innovation.

Duke University Professor Chen Yiran said the idea that Chinese students rush home to help Beijing compete with the U.S. was a fallacy.

"Most of them still want to stay in the U.S.," Chen said. "They're from middle-class families, they pay the millions (in yuan) for these few years, they want to get the investment back."

Universities outside the U.S. have since reported increased interest.

LOOKING ELSEWHERE

Italy's Bocconi University has received many queries from students, its Greater China country manager Summer Wu said.

"Many students said because of (the political situation), they're looking more at other countries, because they don't know what will happen if they go to the U.S.," she said.

Institutions in the U.S. and United Kingdom were also facing competition from Chinese universities that have shot up in global rankings in recent years.

"The growing reputation of China's domestic universities as well as an increase in funding for research and development is making Chinese institutions more attractive," said Pippa Ebel who authored a report on Chinese students for British education think tank HEPI.

The U.S. remains China's most-searched destination on Keystone Education Group's websites, but interest dropped 5% since Trump's additional tariffs announcement, with searches for doctoral programmes declining 12%.

Trump's 145% tariffs on Beijing will impact $400 billion worth of goods sold by Chinese producers in the U.S. market annually and compound slowing growth in the world's second-largest economy.

"China may be more sensitive to shifts in economic conditions and international policies ... affecting household budgets and the overall affordability of pursuing a U.S. education," Keystone's insights director Mark Bennett said.

In Hong Kong, visa arrangements that allow graduates to stay and seek employment have made the city a popular destination, the Chinese University of Hong Kong said.

Li is one such student. After three years in New York, she decided not to embark on the arduous U.S. Green Card application process and chose to move to Hong Kong for graduate school and work.

"When I realised that there could be other possibilities in my life, I was not so frustrated with what I have now," Li said.

(Reporting by Liz Lee and Larissa Liao; Additional reporting by Laurie Chen; Editing by Saad Sayeed)

Posted by: AAngeles