 Megan Davis, a young American, arrives in Shanghai during the Chinese Civil War in order to marry a missionary. She is separated from her fiancé and rescued by General Yen. At his palace, she defends Mah-Li, Yen s mistress, who is suspected of giving secrets to the enemy. Idealistic Megan offers to answer for Mah-Li s actions if her life is spared. Yen knows that Mah-Li will not change, but, motivated by a calm, fatalistic philosophy, and by a growing love for Megan, he agrees. Mah-Li does betray him, and he is ruined. Megan, her ideals as shattered as the world around her, offers herself willingly to Yen.