The University of Illinois at Urbana-Champaign has paid $424,000 to insure itself against a significant drop in tuition revenue from Chinese students.
In what is thought to be a world first, the colleges of business and engineering at the university signed a three-year contract with an insurance broker to pay the annual six-figure sum, which provides coverage of up to $60 million.
The university came up with the idea in 2015 and implemented it last year but received permission from the broker to discuss it in public only earlier this month.
Jeff Brown, dean of the Gies College of Business, told Times Higher Education that the insurance would be “triggered” in the event of a 20 percent drop in revenue from Chinese students at the two colleges in a single year as a result of a “specific set of identifiable events.”
“These triggers could be things like a visa restriction, a pandemic, a trade war -- something like that that was outside of our control,” he said.
Tuition revenue from Chinese students makes up about a fifth of the business college’s revenue.
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This is really a smoking-gun admission.
ReplyDeleteTHIS is how the Chinese are getting such free access to our technology. All they have to do is buy it from the universities.
I have heard that some Chinese students readily admit that their tuition money is supplied by the government-- that they are on a 'free ride'.
Many of them also purchase expensive cars like Lamborghinis to drive here and take home with them-- perhaps laundering the money used to buy them?
We have a big problem here, and it needs to be dealt with.