Australia's international education sector is starting to get concerned about the future growth of Chinese student numbers as Australian universities start establishing more campuses in China and the Chinese government pushes government officials to send their children to Chinese Universities.

The number of Chinese students commencing study in Australia rose 6.4 per cent to more than 78,000 in 2013, the first increase since 2009 when Chinese student numbers dropped after bad publicity about student safety in Australia and sub-standard vocational colleges. However, these increases may not be sustainable.

The Australian Financial Review reports that state-owned newspaper China Daily has observed a downtrend in Chinese students leaving China for studies. It notes a key reason for this is that high-profile educational institutions, including Melbourne’s Monash University and New York University, are setting up campuses in China and giving parents more options.

Another factor is the "push from the central government for officials to send their children to university in China rather than overseas, as a show of confidence in the country’s education system” reports the Australian Financial Review.

Restrictions imposed on the traditional student pathway to work visas and permanent residence has also been cited as a reason for the anticipated slow-down.

Speaking to both the AFR and the Australian , Phil Honeywood, of the International Education Association of Australia, said Australia’s over-reliance on China was worrying.

“It’s a wake-up call for education providers. More work needs to done recruiting from emerging markets in Latin America and in other Asian countries,” he said.

He pointed out that Latin American students were less likely to follow up an English language course with other study now that charges for a second, onshore visa had been increased.

Although China remains the No. 1 market in higher education, India posted a spectacular 64.5pc increase in commencing students. However, Indian enrolments in this sector are less than 20pc of China’s.

Graph: DIBP statistics on current overseas student population in Australia according to country of origin.