Wong Fei-hung runs a martial arts academy in Canton, and is the exemplar of all sorts of native Chinese virtues. He is appalled to discover that the rent on his space in Canton was raised significantly while he was away in Hong Kong. In addition, he has to face the escalating enmity of a local government type, Lui, a martial artist who has adopted many western values and is conspiring with western businessmen to disrupt the Chinese way of doing things in the region. Tournament competitions between rival academies are only a prelude to the final competition between the two masters, in which the Iron Chicken style will be used against the Centipede style of fighting.