Cambridge has slipped down global university rankings while Chinese universities close in as experts warn the old 'world order' is on the 'brink of change'.
League tables from the respected Times Higher Education (THE) magazine show Cambridge has fallen to fifth in the world this year, down from joint third.
In addition, while Oxford is still top of the world, it is only ahead of runner-up Massachusetts Institute of Technology (MIT) in the US by 'the slimmest of margins', according to THE, at 0.1 points.
Overall, the UK has 25 universities in the top 200 – one fewer than last year. Among these, 12 improved, three maintained their position and ten fell.
In contrast, there are 17 Chinese universities in the top 200, 71 per cent of which improved their positions, breaking a three-year stalemate in which it had 13 on the list since 2024.
The top Chinese university this year is Tsinghua University, which overtook Switzerland's ETH Zurich for 11th place, moving up one spot.
This means it now outranks the top university in mainland Europe.
Similarly, Peking University, also in China, held 13th place in the ranking – the same as last year.
Meanwhile, the National University of Singapore moved up two spots to 15th, meaning there are now three Asian universities in the top 15 for the first time.
The THE said: 'Western universities' monopoly on the highest echelons of global academia looks increasingly shaky, with traditional powerhouse institutions relying on the enduring strength of their reputations to offset weakening research performance.
'The rankings show Asian campuses resuming their march up the table after a brief pause… suggesting that the longstanding world order could be on the brink of definitive change.'
THE ranked 2,297 universities from 118 countries and territories across the world in five areas: teaching, research quality, research environment, international outlook and industry.
Among the UK's other high performers in the global top 30 were University College London (joint 17th) and the University of Edinburgh (joint 29th).
China's Zhejiang University (joint 34th) and Shanghai Jiao Tong University (39th) overtook King's College London, which dropped from 38th to 40th place in the league table.
The London School of Economics and Political Science returned to the top 50 in 47th place.
Phil Baty, THE's chief global affairs officer, said: 'The latest world university rankings suggest that we are witnessing a historic realignment of academic power from west to east.'
Cambridge (pictured) has slipped down global university rankings while Chinese universities close in as experts warn the old 'world order' is on the 'brink of change'
He added: 'There are many symbolic landmarks in the 2027 rankings: the lowest number of US and UK universities we have ever had in the world top 200 and the highest ever for China; the first time we have three Asian universities in the world top 15; the first time a Chinese university is ahead of any in continental Europe.
'But the underlying data show that the seismic shift runs deeper than the eye-catching headlines – we are entering a new era that will remake the geography of academic excellence.
'The UK sector's financial crisis is really starting to hit the country's performance in the rankings: on all income metrics – institutional income, research income and industry income – UK universities are decreasing relative to the rest of the world and they are down significantly on research strength and productivity.
'The sector's exceptional global standing is under unprecedented threat.'
US universities dominated the top ten with seven positions, with MIT taking second place and Princeton and Stanford universities taking joint third place.
In total, the US has 53 institutions in the top 200, two fewer than last year. Among these, 33 per cent increased their position while 46 per cent fell.
It comes amid a row over funding for higher education in the UK, with universities saying they do not receive enough from tuition fees and the government to cover costs.
THE said the UK is 'particularly suffering' from financial challenges, with all income metrics – institutional income, research income and industry income – decreasing relative to the rest of the world and research strength and productivity down significantly.
Ming Chen, professor of higher education at Sheffield Hallam University, told THE: 'Financial challenges across UK higher education threaten the global standing of universities and will damage the sector if the government doesn't offer support.'
She added: 'They have been under extreme pressure to operate like businesses to cope with rising operational costs, but this business model has failed.'
Professor Irene Tracey, Vice-Chancellor of Oxford, said: 'We are immensely proud that the University of Oxford has been ranked the world's number one university for a record-breaking eleventh consecutive year by one of the leading and most rigorous ranking systems.
'What particularly pleases me is the depth and breadth of excellence this result reflects.
'From the quality and impact of our research to our thriving innovation ecosystem and global networks, all alongside uncompromising and outstanding teaching and student experience, Oxford is performing at the highest level in what is an increasingly competitive space.
'This is something to celebrate and it is a testament to the extraordinary talent and dedication of our academics, students and professional services staff across the collegiate university as well as the rich higher education environment in which we operate.'