The paper offers a neo-Marxist framework of interculturalisation to accommodate the increasing cultural diversity in the internationalisation of higher education with specific reference to Chinese students in New Zealand. At present, there are few official strategies in place to provide for the needs of international students in New Zealand universities. Tolerance is often promoted to cope with differences in general, but this notion is not sufficient to embrace and encourage cultural diversity in higher education. The paper reviews neoliberal and neo-Marxist perspectives of interculturalism/interculturalisation. In order to move beyond mere tolerance of cultural diversity, which is seen as a problem to be overcome, the paper concludes that a national and institutional policy for internationalisation in higher education should be underpinned by neo-Marxist principles of interculturalism.