Charlie Chan arrives in Shanghai at the behest of the U.S. government to help stop an opium smuggling ring. He receives a warning aboard ship not to stop in Shanghai. He is met by his Number One Son, Lee Chan, as well as Philip Nash and his fianceé, Diana Woodland. Charlie is the guest of honor at a banquet held that evening, hosted by Sir Stanley Woodland (David Torrence in an uncredited role). When Sir Stanley opens a box to give a handwritten scroll to Charlie, he is shot and killed by a gun inside the booby-trapped box. Charlie meets with Colonel Watkins, the commissioner of police, and agrees to investigate the crime. The next day, American Federal Bureau of Investigation man James Andrews arrives in Shanghai, accompanied by his valet, Forrest (Gladden James in an uncredited role). That night, an assassin shoots what seems to be a sleeping Charlie Chan in bed. But Charlie, suspecting another attempt on his life, rigged a dummy and escaped death.
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