The master discourses of economic globalisation and the knowledge economy each cite knowledge diasporas as vital "trans-national human capital". Based on a case study of a major Australian university, this article examines the potential to deploy China's large and highly-skilled diaspora in the service of Chinese and Australian scientific and technological development. It finds that at a time when much of the world is deeply mired in a global financial crisis, this treasured resource of highly-skilled intellectuals assumes even greater significance. Meanwhile, there are key challenges to be confronted to fully utilise China's overseas talent. It argues that the Chinese knowledge diaspora are a modern kind of cosmopolitan "literati", and could contribute actively to higher education internationalisation in both Australia and China.