Auckland University says the government's decision to rule out a travel exemption for international students is "tremendously disappointing".
Vice Chancellor Stuart McCutcheon says there are about 12,000 new and returning students stuck in China, unable to start their semester.
He says provisions are being made for correspondence learning, but that won't help for practical coursework like labs and field trips.
Professor McCutcheon told RNZ reporter Sarah Robson there is now a real risk that students stuck in China will simply choose to go elsewhere.