Despite or perhaps because of globalisation and internationalisation in the contemporary world, the role of education has become more significant in nation formation. However, whereas in the past its function was to create homogeneity and assimilation, today it must deal with diversity and plurality. The modernist premise of “one nation one state” is being questioned and re-constituted with the notion of the plural national-state. This book explores school processes in Hong Kong under these new conditions. The focus is on investigating how the concept of a national identity of the “one country two systems” policy is developing, and is thus a study of that diversity which all education systems now have to address. The policy aims at facilitating national re-integration and consolidation in the face of an insistence on local citizens’ universal civic rights and the values of liberty, equality, democracy and autonomy. The analysis shows citizenship education in the Hong Kong school system is more a locally-oriented cultural and political process than a transmission of a national ideology. Students learn their values, attitudes and perspectives by engaging and interacting with people within and beyond the school community. They acquire a liberal and democratic national identity which is distinct from that of pan-Chinese state-nationalism in mainland China. The book is thus both a case study of Hong Kong and an analysis of change in the relationship of education, citizenship and national identity in the contemporary world.