Last month, 12.9 million students in China sat for the National Higher Education Entrance Examination, or gaokao, the number sliding for a second year, and down from 13.3 million last year. Given that births have fallen below 8 million annually to a record low, in 18 years, the country’s more than 3,100 universities will find themselves fighting over an even smaller cohort. This will coincide with a growing global competition for talent. In a knowledge-driven economy, the countries that prosper...