Chinese students are struggling to socialise with British students due to limited accommodation options and a lack of exposure to western apps, a report has suggested.

University students from China are more likely to have lower levels of spoken English than their peers from other developed economies, which acts as another barrier, according to the Higher Education Policy Institute (Hepi) paper.

The think tank’s report said “ethnic clustering” – where Chinese students mostly socialise among themselves – is taking place on UK campuses.

All international students face challenges when moving to an unfamiliar environment, but there is evidence to suggest that the problems facing Chinese students are more acute and distinct

It suggested many Chinese students want to diversify their friendship groups but they find it difficult due to the high number of Chinese students around them and a lack of diverse accommodation.

The report – which draws on interviews with students from China, university staff and sector experts – said some of those from China feel that British universities see them simply “as a revenue stream”.

University tuition fees for domestic undergraduate students in England are capped at £9,250 per year, rising to £9,535 in 2025/26, but fees for people from overseas studying in England have no upper limit.

The think tank’s paper warned: “Respondents lamented the lack of effort universities make to understand and support their community.

“This perception, combined with China’s strained economy, could reduce the appeal of UK HEIs (higher education institutions) among Chinese students, who may choose to study elsewhere or to stay closer to their network in China.”

The latest Ucas figures, released on Thursday, show the number of applicants from China who accepted a place on a UK degree course has fallen this year.

Overall, 17,070 students from China were accepted on to undergraduate courses in the UK this year, compared to 17,405 in 2023 and 18,500 in 2022.

University leaders have repeatedly warned of significant financial concerns as a result of domestic tuition fees which have not kept up with inflation and a fall in the number of international students.

The think tank’s report said it would be a “mistake” for British universities to be complacent about the enrolment numbers of Chinese students.

These students, and the high fees they pay, are critical to the long-term economic health of many institutions. That means institutions will have to work harder to attract and keep them

It has called on universities to offer support to those facing “integration challenges” when they arrive in the UK – like a “buddy system” which pairs domestic students with Chinese ones.

This system could help improve Chinese students’ English language skills and support them to navigate western apps and websites, the report added.

It said: “Since Chinese students are unfamiliar with media platforms and apps used in the UK, they continue to rely on China’s domestic apps, enhancing the likelihood of ethnic clustering.

“These barriers affect their social, cultural, lifestyle and employment opportunities.”

Chinese students said they were more likely to turn to Chinese apps to help find accommodation, which led to them living with more people from their own country.

The paper also found that many Chinese students have lower language proficiency than their IELTS (International English Language Testing System) scores suggest – especially in spoken English – which can limit “how far they can integrate and thrive in the UK”.

It has called for institutions to allocate on-campus accommodation to overseas students and work more closely with recruitment agents in China to “reduce social isolation”.

Pippa Ebel, author of the report, said: “Although the financial value that Chinese students contribute to the UK economy is increasingly being realised, their potential social and cultural contribution is often overlooked.

“All international students face challenges when moving to an unfamiliar environment but there is evidence to suggest that the problems facing Chinese students are more acute and distinct.”

She added: “If more assistance was provided for Chinese students to integrate, not only would the students have a better experience but campuses and UK society at large would feel the benefits.”

Josh Freeman, policy manager at Hepi, said: “The international environment is changing and UK universities can no longer rely on Chinese students arriving in increasing numbers.

“Yet these students, and the high fees they pay, are critical to the long-term economic health of many institutions. That means institutions will have to work harder to attract and keep them.

“But the sector should not do so at the expense of quality, and rigorous admissions standards on language and academic ability must be maintained.”

A Universities UK spokesperson said: “International students are a valued – and vital – part of the UK’s higher education community, bringing a breadth of experience to campus.

“The popularity of our universities with international students is a testament to the excellent reputation of our sector, and universities are well practised at mitigating risks which come with operating in a global market.

“Any student looking to study in the UK has to meet a minimum level of English language competency set by the Home Office. Universities follow these rules and many go beyond in what they ask of students.

“To ensure that people can have the utmost confidence in the system, we are working with our members to set out good practice in the assessment of English language assessment, and are actively working with Government on their review of English language requirements.”