Security concerns erupt over plans to expand Britain's first Chinese state university near Oxford

However, it is set to extend its premises with a lecture theatre seating 200 and extensive student housing.

Residents now fear they will be overwhelmed with students, concerns that have been compacted due to the fact the faculty has been awarded the power to sponsor student visas.

Members of the local Friends of Boars Hill association said there had been some breaches of their privacy and the village had grown busy with students.

One member said: "One lady was away, and so they just walked into her garden and sat in her greenhouse. I’ve had students taking photos of my house, and we’ve had people flying drones over our properties."

A spokesperson for the group said: "These are the problems now, when its only a handful of students...while the plans are for 60 bedrooms, the dean wants nearly 200. The parachuting of an overseas university to bring these students to a small, quiet village will completely change its character."

Another member raised his fears of clashes between anti-China protesters and the university, should the state-owned institution become a magnet for protests. They said: "As a village, we feel we are being used."

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The company is registered to a building associated with the Chinese Ministry of Education.

A page on the ministry’s website discusses the opening of the UK campus, adding: "As China’s comprehensive national power and international influence gradually increase, the internationalisation of education has become a new trend in development."

However, a note on the Office for Students (OfS) website suggests the institution could be operating illegally by referring to itself as a university in the UK.

The OfS’s registration page for Peking University HSBC Business School (PHBS) says the trading name is "Peking University HSBC Business School UK Campus." underneath it adds: "The provider does not have the right to use ‘university’ in its name."

PHBS is a component school of Peking University, the second oldest public university in China, founded in 1898 by the Guangxu Emperor. The school itself was founded in 2004 with funding from HSBC, and was the first Chinese business school to offer MBA courses in English.

Founder of the UK-China Transparency group Sam Dunning said: "This campus is run partly according to Chinese Communist Party rules which are not in keeping with UK legislation. This is a major test of whether the universities regulator is, as the government insists, prepared to enforce existing law protecting free speech on campus."

A spokesman from Peking University HSBC Business School told The Times: "With a mission to cultivate leaders who contribute to society, our university emphasises the importance of students valuing harmonious relationships with local neighbours.

"We set an example for our students by inviting our neighbours to campus events, such as academic seminars and conferences.

"In addition, our campus is open to the community; for example, many residents regularly walk their dogs on campus, and our car park is available to our neighbours when they need additional parking space."