After World War II, Chinese residents of Singapore demanded the establishment of local Chinese universities. The ruling regime, however, which was under the shadow of the neighboring Malay-dominated Malay Peninsula, was forced to suppress the development of such schools. In Hong Kong, the British needed to install a Chinese university to counter Beijing's and Taiwan's campaigns for recruiting students from the colony. As Hong Kong was a monoracial Chinese society, the government, not having to worry about the reaction of other indigenous groups, met this challenge by founding a fully recognized Chinese university. This research demonstrates that under diverse backgrounds of racial politics, state authorities have unequal latitudes to accommodate the educational institutions of subordinated racial groups. It also reveals that state education policies in small and dependent settings, unlike those in big and sovereign nations, are more susceptible to pressures from external powers and influences from the metropolis. These findings urge scholars to pay more attention to the factor of race and use comparative methods when employing the theories of state and hegemony to investigate education and power.