Scottish universities are targeting China and its huge student population in order to keep financially afloat.

Education secretary Michael Russell said yesterday, at the end of a week-long trade mission to the country, that focusing on China was one of the key strategies for bolstering Scotland’s educational sector by attracting more Chinese students to study in Scotland, encouraging more research funding from the Far East for Scottish universities, and opening up what he described as an “unlimited market” for teaching English to Chinese students.

Speaking from Beijing, Russell said: “Children at almost every level are keen to learn English, and their parents are keen to learn English to a high standard … there is an almost unlimited market in China. And Scotland is well placed to deliver as much as it wants to do.”

Over the course of the week he met the Chinese minister for education to discuss in detail piloting partnerships in teacher education and building on existing projects such as joint PhD research programmes. He also met the educational commission in Tianjin to discuss proposals for Scotland providing more higher and vocational education for the city of 12 million. Scotland already has strong ties with the metropolis – this week Russell presented the 10,000th HND awarded by the Scottish Qualifications Authority in the area.

“The possibility of expansion into other cities and with other delivery partners really is quite enormous,” Russell said.

Attracting more money from such an economic powerhouse is one way the Scottish Government hopes to relieve the increasing pressure on university finances. Currently there are more than 5000 Chinese students in Scottish institutions, the most of any non-EU nationality. Unlike Scottish students, they pay fees set by the university, making them a lucrative source of income.

“Students coming from China is a very, very big market which we have tapped into, but not enough yet,” said Russell.

Collectively, international students in Scotland contributed £419 million to the economy in 2009. Last year international research collaborations were worth more than £68m to Scotland.

With the cut of 40% to university teaching budgets announced in last week’s spending review expected to be echoed in the Scottish budget next month, such income streams are now increasingly important.

The number of Chinese students at Glasgow University has risen by 40% in the past three years. The principal, Professor Anton Muscatelli, said: “China is absolutely crucial. It is one of our most important markets and is likely to grow. Scotland is at a key competitive advantage. We have world-class institutions.”