THE future of the $15.5 billion overseas student industry is under threat after the Chinese Government went public with concerns about violence against its students in Australia.

Battling to contain the damage arising from attacks on Indian students, university vice-chancellors fear Australia's third-largest export industry may face sanctions from the Chinese and Indian governments.

Chinese embassy counsellor Liu Jin yesterday said his Government was intervening to ensure the safety of Chinese nationals.

"There are over 130,000 Chinese students in Australia," he said. "They have, on the whole, had a good study and living environment in Australia, but attacks on Chinese students also occurred in recent years.