Still reeling from his battle with the mysterious 'Bloody Cross', Li Feng, aka: Captain China, is sent to the city of Harbin in the Heilongjiang Province to take part in the annual 'ice festival'. The biggest attraction this year is a 40-foot ice sculpture of the Captain.
While being in the public to drum up support and national pride is nothing new for Li Feng, (it being something he did quite often back when he was 'The Liberator') he's beginning to feel a bit resentful of how he's now presented to the public. His old Maoist teachings also clashing with how he's being used as a 'marketing tool', at times at the expense of his purpose and mission.
Regardless of his personal objections, the Captain does as he's told and participates in the Festival. The crowd's reception of him begins to warm his disposition, especially meeting some old Liberation Army soldiers in attendance... before a sudden explosion rips apart pieces of the ice sculpture. Standing in the now severed head of the Captain China statue is a man in an ornate Dragon-themed costume, claiming that Li Feng isn't worthy of the title of Captain China... or the Liberator for that matter.
This man reveals himself to be Wang Biao, one of Feng's fellow participants in the 'Enhanced Soldier Project' from 1958. He's incredibly bitter at having been overlooked by Mao Zedong... despite being superior to Li Feng in fighting ability and combat. He then reveals that when the Enhanced Soldier process began to physically deteriorate his body, he fled to Heilongjiang... using the intense cold to not only freeze himself, but slow his body's degeneration.
Biao then reveals to a stunned Feng that his body was discovered about eight months before his own revival... and had his health restored. Biao claims he was to be given the honor of being Captain China, but again was passed over when the higher-ups opted to use the former Liberator instead. Furious at having his 'birth right' denied him again, Biao (now calling himself 'The Middle-Man') wants to use this public event to prove his superiority.
The two super-powered individuals clash, with Biao's claims of being Feng's superior being proven more than just simple boasts. Add to that the series of hidden/concealed weapons at Wang's disposal. Afraid of hitting the crowd with his 'Revolutionary Cannon' Captain China's options against his opponent are limited. Taking advantage of an opening, the Middle Man uses a chain-sickle to disarm the Captain, sending the specially made handgun flying.
Unbeknownst to Biao, the Cannon collides with the hand of the Captain China ice sculpture (the one holding an ice replica of the Cannon itself)... breaking it off and sending the piece falling to the ground... right on top of the Middle Man just as he's about to finish off Li Feng. Embarrassed and defeated, Biao curses Captain China and uses a smoke bomb to escape.
The crowd cheers for the Captain, as Feng is left to ponder this latest development in his new life. Some of his friends and higher-ups reveal that they had known of Biao, and that the overly-stylized dragon costume he had on was to be the original costume for Captain China. Feng chuckles to himself, guessing he had 'dodged a bullet' in that regard. Then an old man in a motorized, futuristic wheelchair approaches. The stranger chuckles about the current series of events, before suffering a coughing spasm. The Captain, not knowing who the old man is, asks if he's all right. Dr. Hsu, one of the Captain's handlers and crew, runs up to the elder's side.
She knows who the old man is, and introduces Feng to the individual. His name is Professor Bai-Shi, a highly-skilled scholar in the field of Biogenetics. She reveals to a shocked Captain that he is responsible for both the 'Captain China Project' as well as the revival of Li Feng (and presumably Wang Biao too).