Through ethnographic research, this paper explores narratives of failure constructed within a private Australian accounting college in China. The accounts provided by teachers and students are problematized in order to address how racialization is enacted through accounts of failure within the research site. Through an interpretive theoretical framework and the methodology of Michael Burawoy, racialization is exposed as a form of justification for the concerns teachers and students faced. Within accounts of failure, racial framing of the body and the acculturated minds of students were simultaneously ascribed negative attributes deemed in contradiction with this form of transnational education. In unpacking how these processes of racialization are tied to the very structure of transnational education itself, this paper addresses how standardized and globalized curricula produce unintended local effects.