The US–China tension and global reallocation of Chinese STEM talents

Weidi Yuan

Journal of Comparative Economics, 2026, vol. 54, issue 2, 484-510

Abstract: Science knows no borders, but is never detached from politics. We study a lesser-noticed consequence of the US–China tension since 2018: the downturn in STEM educational services trade. Our analysis reveals a pronounced drop, exceeding 40%, in Chinese STEM students pursuing graduate study in the US. Visa restrictions, geopolitical uncertainties and anti-US sentiments reduce the allure of US education, prompting students to seek alternatives in other foreign countries or China. The two reallocation effects are comparable, suggesting similar elasticities of substitution. Further analyses find that females tend to relocate to other foreign countries more than males do.

Keywords: Political tension; Service trade; STEM; Gender (search for similar items in EconPapers)
JEL-codes: F13 F14 F51 I23 (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jcecon:v:54:y:2026:i:2:p:484-510

DOI: 10.1016/j.jce.2025.11.004

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