China Business Schools Hit Their Stride

China's B-schools may not be Harvard-caliber yet, but for Chinese students, and even some Westerners, they're increasingly on the short list

By Michele Scrimenti

A decade ago, if an ambitious Chinese professional wanted an MBA, practically the only option would have been to go abroad. But with startling speed, Chinese MBA programs have upped their game, keeping some of the country's top talent at home while also drawing foreign high-flyers who have their sights set on China's economy. Their international recognition has not yet caught up with their caliber, but it shouldn't be surprising to see such names as China Europe International Business School (CEIBS) and Tsinghua University ranked right behind ones like Kellogg and Sloan within the next 10 years.

In 1991, the Chinese government formally authorized MBA programs at nine schools. As of the end of next year, however, that number will have exploded to 236, a 25 percent increase over 2010. More than 20,000 MBAs graduate every year, but only a few programs offer serious international MBAs, with courses taught in English often by professors from such schools as the Massachusetts Institute of Technology Sloan School of Management (Sloan Full-Time MBA Profile), Harvard Business School (Harvard Full-Time MBA Profile), and Stanford Graduate School of Business (Stanford Full-Time MBA Profile). These programs alone won't come close to satisfying demand. Over the next 10 years, China will need an additional 75,000 international MBAs who speak at least one foreign language, according to education research firm DHD Consulting.

But where those MBAs are going to work could be surprising, if trends hold. Even before the financial crisis, when foreign companies suffered layoffs and hiring freezes, Chinese students' preferences had been shifting toward domestic private businesses and well-performing state-run companies, such as Cofco and ICBC, that have major business overseas. Only three foreign companies—Google (GOOG), Microsoft (MSFT), and Procter & Gamble (PG)—were among the 50 most-preferred companies to work for in a survey, released in August, of more than 200,000 university students, according to ChinaHR.com.

The Appeal of Job Stability

While international MBAs are different—they tend to go to finance and consulting, fields dominated by foreign companies—the shift to Chinese employers is picking up there, too.

"Only students who have already had experience at multinational companies would choose to work for them after graduation," says Alex Tian, an international MBA student at Tsinghua who has worked for Mercedes Benz (DAI) and Rolls Royce (RR). "Even those of us who've been at foreign firms might not go back because of culture differences and job stability."

As Chinese continue to stay for international MBAs, more foreign students are being snatched away from top schools in the West, a sign that the value of an MBA degree in China is rising.

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