Trump calls Chinese students ‘good business’ for US universities: Why US President has softened his tone on Beijing

US President Donald Trump (L) and China's President Xi Jinping - File Photo

In a surprising change of tone, US President Donald Trump has defended the presence of Chinese students in American universities, calling it “good business” and warning that reducing their numbers could cripple the country’s higher education system.

In a recent interview, Trump said, “You don’t want to cut half of the students from all over the world that are coming into our country, destroy our entire university and college system. I don’t want to do that.”

He added, “We do have a lot of people coming in from China; we always have. If we were to cut that in half, you would have half the colleges in the United States go out of business.”

At first glance, these remarks appear to be a complete departure from his earlier hardline stance on China and immigration. But analysts say the shift has more to do with economics than diplomacy. US universities are heavily dependent on international students, especially those from China, who pay higher tuition fees and contribute significantly to the national economy.

Foreign students play a critical role in keeping American colleges financially afloat. Many universities, particularly smaller private institutions and historically Black colleges, rely on international enrolments to sustain their operations.

According to estimates cited by US media, international students contribute “trillions of dollars” to the American economy. Trump himself acknowledged this in plain terms, saying, “It’s not that I want them, but I view it as a business.”

He also warned that restricting foreign students could financially devastate the education sector. “Half the colleges in the United States would go out of business,” he said, underlining the financial pressure on smaller institutions that depend on full-paying international students.

Trump’s sudden reversal comes amid continuing tension between Washington and Beijing over trade, technology, and security. Earlier this year, US authorities had announced plans to revoke the visas of some Chinese students, especially those in sensitive scientific fields or linked to China’s ruling Communist Party.

That decision drew sharp criticism from universities and business leaders who warned that such restrictions could harm America’s research and innovation ecosystem. Trump’s latest comments suggest a more pragmatic approach aimed at protecting domestic institutions and preserving a crucial source of revenue.

The president’s remarks also reflect a broader reality: many US universities are struggling with declining enrolments and rising costs, and foreign students are increasingly seen as economic assets rather than diplomatic liabilities.