China’s Liberal Arts Shift: The Decline of Humanities in Elite Universities

China’s Liberal Arts Shift: The Decline of Humanities in Elite Universities

The New Academic Landscape: A Radical Shift at Fudan University

China’s education sector is undergoing a major transformation, with one of its most prestigious institutions, Fudan University, leading the way. In a recent announcement, Fudan’s President Jin Li revealed a significant restructuring of its undergraduate admissions policy, aiming to dramatically reduce the number of students admitted to humanities programs. The proportion of liberal arts students will be cut from 30-40% to just 20%, aligning with the university’s vision for a balanced, interdisciplinary approach—dubbed the "four-wheel drive" model—where science, medicine, engineering, and liberal arts each account for equal shares of enrollment.

This restructuring reflects deeper trends in China’s higher education landscape, where STEM (science, technology, engineering, and mathematics) fields are increasingly prioritized over the humanities. The shift has sparked debates about the value of liberal arts education in a rapidly industrializing and technologically advancing economy, as well as its long-term consequences for the job market and intellectual discourse.

The Data Behind the Decision

Fudan University’s undergraduate teaching quality report from December 2024 shows a stark imbalance: humanities and social sciences accounted for 42.7% of the student body, compared to 28.2% in science, 15.3% in engineering, and 13.9% in medicine. In contrast, the new policy aims to equalize these proportions, positioning humanities alongside other disciplines rather than dominating the academic structure.

This decision is not unique to Fudan. Across China, universities are scaling back their liberal arts programs, shifting resources toward disciplines that drive technological innovation and economic growth. The motivation is clear: China is investing heavily in emerging fields such as artificial intelligence, semiconductor technology, biotechnology, and space exploration, areas that demand a robust STEM workforce.

A Global Trend: The Decline of Humanities?

This trend is not limited to China. Across the world, universities are downsizing humanities departments due to declining student interest and poor job market outcomes. In the United States, liberal arts colleges have faced similar challenges, with enrollments in humanities programs shrinking while STEM fields continue to expand. A study by the American Academy of Arts & Sciences found that the number of students majoring in English and history dropped by more than 25% between 2012 and 2022.

Similarly, in Japan, the government has encouraged universities to cut back on humanities and social sciences programs to focus on fields that contribute more directly to economic growth. In 2016, Japan’s Ministry of Education requested that national universities either shrink or entirely eliminate their liberal arts faculties—a controversial move that mirrors the current developments in China.

What’s Driving the Shift?

1. Economic Priorities: China’s emphasis on high-tech industries and self-sufficiency in critical sectors like semiconductors, AI, and advanced manufacturing necessitates a stronger focus on STEM education. Humanities, on the other hand, do not provide direct economic returns in the same way.
2. Job Market Realities: The employment landscape for humanities graduates in China is particularly challenging. Compared to STEM graduates who enter well-paying fields like engineering and data science, many liberal arts graduates struggle to find stable, high-income jobs. A commonly cited example is that a software engineer from a mid-tier Chinese university can earn over $10,000 per month in Japan, while a journalism graduate from Wuhan University—a top-tier institution—might struggle to make a living in the same market.
3. Political and Ideological Factors: Some argue that the diminishing focus on humanities aligns with government preferences. Humanities and social sciences often foster critical thinking and discussions on governance, history, and society—topics that can sometimes challenge official narratives. By emphasizing STEM, authorities may also be shaping a workforce that is highly skilled but less likely to engage in politically sensitive discourse.
4. AI and Automation: The rise of large language models like ChatGPT and DeepSeek has heightened concerns among liberal arts graduates. Many fear that AI will replace content creation and translation jobs—fields where humanities majors traditionally find employment. While AI still struggles with deep, original thinking, its ability to generate and analyze text has reduced the demand for lower-level writing and research jobs, making some humanities careers more vulnerable.

The Counterargument: Why Humanities Still Matter

Despite the push toward STEM, critics warn against the long-term risks of sidelining humanities education.

• Ethical and Social Considerations: Technological advancements without ethical oversight can lead to unintended consequences. AI ethics, legal frameworks for emerging technologies, and public policy all require expertise from philosophers, historians, and sociologists. China’s digital governance, for example, has relied heavily on legal scholars to draft policies on data privacy and AI regulation.
• The Success of Interdisciplinary Fields: Some of the most impactful innovations come from the intersection of humanities and technology. Fields like digital humanities, computational linguistics, and fintech regulation demonstrate how knowledge from both domains can be leveraged for economic and societal benefits. At Fudan, the School of Digital Economy and Financial Technology exemplifies this interdisciplinary approach, blending social sciences with emerging tech fields.
• Cultural and Soft Power: While China is excelling in tech and infrastructure, its cultural exports—literature, cinema, and philosophy—still have room to grow. Notably, one of China’s most globally recognized novels, "The Three-Body Problem," was written by an electrical engineer rather than a literature graduate, highlighting both the overlap and the potential gap in China’s cultural production.

What It Means for Investors

For global investors, these educational trends offer insights into China’s economic priorities and future talent pool:

1. More Investment in STEM Education: Expect increased funding for research universities, AI labs, and engineering programs. Companies in education technology, AI research, and vocational training are likely to see government support.
2. Declining Humanities Job Market: Media companies, publishing houses, and traditional journalism sectors may continue to shrink in China. Meanwhile, sectors requiring regulatory and ethical oversight (AI governance, legal tech, policy analysis) could benefit from a shift toward specialized humanities training.
3. Growth of Interdisciplinary Fields: The rise of law-tech, AI-ethics, fintech regulation, and computational social sciences signals a demand for talent that blends technical expertise with humanities-based analytical skills. Companies investing in data privacy, AI compliance, and fintech law should take note.
4. China’s Shifting Innovation Landscape: As humanities shrink and STEM rises, China’s innovation ecosystem may become more engineering-driven. This could mean fewer cultural and theoretical contributions to global thought leadership, but a stronger focus on practical, applied technology that can dominate international markets.

The Future of Liberal Arts in China

Fudan’s restructuring reflects a broader, global shift in higher education, one that prioritizes economic imperatives over traditional academic balance. While the humanities will not disappear, they are increasingly being repositioned as auxiliary disciplines supporting STEM and business. For students, educators, and policymakers, the challenge remains: how to balance technological progress with the critical thinking and ethical considerations that humanities education provides.

For investors, this trend offers clear signals about China’s future workforce and innovation strategies. The country is placing its bets on science and technology, and those looking to align with its trajectory would do well to follow where the talent—and the money—is headed.