According to this question, UK is not providing funding for international student, which is malicious and not true, all my advisory team, mentor and two co-mentors, all 3 of them, plus head of department and her husband, and other academic stuff in 50%, they finished PhD (with scholarship) inUK, and they are all from ASIA!!! country very close to Vietnam, I cannot believe in his words. Is he playing racist card? or political situation changed?
The question says:
Most of the funding I applied for were strictly 'UK/EU citizens only', and it is rare to have full funding for international students. I have applied to a lot of places, and received a lot of responses in the form of "... you are a good match, but I don't have funding for overseas students...".
then goes on to ask why it is considered acceptable to limit some sources of PhD funding to its own or EU citizens.
The OP never claims that "UK is not providing funding for international student" as you seem to believe, so the fact that some international students complete funded PhDs in the UK does not contradict any claims in the question. The OP says only that in his experience, there is less funding available to applicants who are not UK/EU citizens.
If you have some reliable (not anecdotal) data showing that the ratio of available funding to PhD applicants is identical for UK/EU students and non-UK/EU students, by all means, please provide that data. I suspect that you do not.
I would like to point out the problem that you do not know how many international students applied for these positions received by your colleagues who were rejected. You also have not clarified whether your colleagues are not funded through the university and I suspect you don't have a clue.
I strongly encourage you to not accuse someone of "playing the race card" when you admit you do not understand the situation at all.