In the 1950s, an army reconnaissance group finds an enemy spy organization lurking in a coastal town in southeast China intending to collect military intelligence.
During the War of Resistance Against Japan, a CCP army unit guarding the southwest border follows what is ostensibly a trading caravan and discovers that these traders are actually smuggling arms and spy equipment to Chiang Kai-shek and his American allies.
Yang Bailao, a tenant farmer, lives with his daughter Xi'er. The despotic landlord, Huang Shiren, attempts to forcibly take Xi'er for himself. On the eve of the Chinese Spring Festival, Huang forces Yang to sell his daughter as repayment of the debt Yang owes him.