Martial artist Huo Yuanjia defeats the arrogant provocation of a Russian strongman in Tianjin, but he knows that individual fighting skills alone cannot change the plight of his people, who are constantly bullied and oppressed. Soon afterward, the Russian strongman, harboring a grudge, joins forces with a Japanese sumo wrestler named Hei Yan to set up a challenge arena in Shanghai. Huo Yuanjia and his close friend Nong Jinsun travel to Shanghai, where they meet Qin Heqi, a respected veteran of the martial arts world. During the tournament, Qin Heqi makes a tragic sacrifice. Grief-stricken, Huo Yuanjia steps into the ring and defeats the formidable enemy. After this experience, he resolves to break away from his family's traditional restrictions on martial arts and establish the Jingwu Athletic Association, teaching martial arts widely in the hope of strengthening the spirit and character of his people.