China remains the largest source of foreign students in Japan, accounting for about 36.7% of 336,708 international students, and universities have relied on Chinese enrollment as a financial safeguard, especially for small private colleges. When Japan-China tensions rise, campuses grow unsettled, and if admissions fall, some universities may face mergers or withdrawal from the market. A survey of about 5,000 cram schools and 2,000 staff found roughly 80% expect fewer Chinese students next year and 80% view the impact as a hit to admissions. The reliance is strongest at smaller institutions, prompting calls for new strategies as the once-influential Waseda University model is reevaluated.