Not all the students who started courses are newly arrived students, as many are have completed one course already and are starting another one.

Gary Fan, a bachelor of commerce student at the University of Sydney Business school, said one drawcard which brought him to Australia was the temporary graduate visa which allows international students to stay in the country and work for up to four years after they graduate from a university course.

Good post-degree options

"Australia has good conditions for working after the degree," he said, much better than was offered by Australia's main competitors for international students, the United States and the United Kingdom.

Mr Fan had considered studying in the US but said Australia had good quality education, was "more peaceful and safer", and closer to his home city of Shanghai. And he could complete his bachelor degree in three years in Australia instead of four years in the US.

Chinese students Cao Liu (left) and Gary Fan, chose the University of Sydney Business School for their degrees. Louie Douvis

"Also I love the weather in Australia," he said.

Cao Lui, who is studying a master of management at the University of Sydney Business School, said one reason for her to study overseas was Australia's broader approach to education.


"In China we only focus on exams. There is not much opportunity for real world projects," she said.

Ms Lui said she was doing a real business project with online fashion retailer Iconic as part of her course to help customers find better ways of choosing the right size of clothing.

Chinese students Cao Liu (left) and Gary Fan, chose the University of Sydney Business School for their degrees. Louie Douvis

International Education Association of Australia chief executive Phil Honeywood said the figures showed that the Chinese student boom was a real boost to the economy.

However, he warned that Australia was becoming more reliant on one country for international students, and losing diversity in its international student population.

"Clearly Australia needs to be better at diversifying its key student source countries," he said.

"There are worrying developments in some courses with over 80 per cent of students native Mandarin speaking."

Figures from the Australian Bureau of Statistics last week revealed the value of education exports grew to $19.7 billion in the year to March, up 12 per cent on the previous year.