The story takes place at the beginning of this century in Tianjin.
Dongfang Xu is a talented Kungfu man. In order to make a living, he brings his whole family to Tianjin and becomes a street-performer. One day, he is humiliated by He Dahai, the Principal of the Shenzhou Kungfu School. Later he meets old Magic Palm Li and learns Ba Gua Palm boxing from him. Dongfang improves his skill to almost perfection.
At that time, an internationally known Russian wrestler Dadelof and his group, who advertise themselves for having defeated wrestlers of 46 countries, come to Tianjin. After winning several tournaments, Dadelof becomes very proud and insults the Chinese as "Sick Men in Asia". This enrages Daihai. He jumps into the ring and beats up Biqika, Dadelof's assistant. But, on the way back Dahai is knifed by Niu Wu, Dadelof's Chinese running dog. Dongfang, forgetting his past humiliation, visits Dahai in the hospital to show his respect. Dahai is deeply moved and asks Dongfang to replace him as the Principal of the Shenzhou Kungfu School.
To stand upon national dignity, Dongfang signs a death-and-life contract with Dadelof. On the day of tournament, Niu Wu and his men kidnap Dongfang 's daughter, Yurong. At this crucial moment, what is Dongfang's decision, to go on with the tournament or to save his daughter? Watch the film and you will find out!