This discussion con s at an important time in Hong Kong's history, a it will end 155 years under British rule and fall under the sovereignty of China on July 1, 1997.The article discusses the growth of Hong Kong into an economy powerhouse and how it has utilized international education to achieve this lofty status. Topics covered include the many challenges faced in the 21st century, from the perspective of the higher education sector itself-its institutions, students, and faculty groups. Hong Kong's expansion program, which was initiated in 1989, has faced several challenges that may very well impact on the success of the program. These concern include maintaining high quality and language standards, efficient use of resources, employment opportunities for graduates, and the need to maintain world-class faculty at the higher education institutions. Finally, there is a discussion of the prospect for internationalization after Hong Kong returned to Chinese sovereignty in 1997.