This article examines the deregulation of the overseas student sector that took place in Australia during the mid-1980s. It focuses specifically upon the short-term English- language courses that were sold to students from the People's Republic of China. The article suggests that the Hawke government's policy of encouraging Australian language schools to "export" educational services to China was marred by a narrowness of vision that destabilised the government's broader commitment to active engagement with the Asian region.