This dissertation discusses the dynamic formation of cultural identity in the modern Chinese self through postcolonial and Lacanian psychoanalysis, utilizing the history and political situation of modern China as a platform for the author's inquiry. Defeated by Western and Japanese colonial powers, China was forced to break with its long traditions and move towards modernity. The loss of cultural continuity formed the drive for establishing the modern Chinese self, and resulted in a complex involving both desire and resistance towards the West. The author suggests the tension of this ambiguous cultural identity can be resolved by developing an ability to establish a double identity, beyond the Chinese/Western power struggle, and reconnecting with original Chinese culture, which over thousands of years has been repressed.