But, that effect can only really last a couple of generations at most: the students go home, a proportion of them become (well-trained) academics, and the Chinese universities that those academics work at become competitive with the foreign universities. A similar thing happened with the "plate glass" universities of the 1960s UK; initially those were bootstrapped with Oxbridge academics, but within 30 years they were standing on their own feet.
As far as I can see, current UK universities have no plan to replace the revenue that will be inevitably lost when the Chinese universities also begin to stand up on their own feet.
How I think about it:
Let us say, as a though experiment, that two things are true.
1. Outside of the university orgs, absolutely no one cares if the universities have enough resources to teach the engineers, scientists, teachers, doctors, etc. that society needs.
2. Outside of the university orgs, absolutely no one cares if half the people equipped to be good university teachers cannot find work.
In that hypothetical scenario, would the universities change? Saying no the Chinese etc. means that they would have to downsize.