In the film, Doctor Omar, a resourceful and somewhat unscrupulous figure, uses his influence to bribe the Shanghai police in order to keep Dixie Pomeroy, a struggling American showgirl played by Gene Tierney, out of jail. Recognizing her dire financial situation, Omar then extends an invitation for her to seek employment at the casino owned by a formidable and legendary figure known as the Mother Gin Sling. This casino, a hub of gambling and intrigue, becomes a central setting for much of the story.
Once inside the casino, Omar catches the eye of a young woman with a privileged background, who has recently graduated from a European finishing school. She is eager for adventure and new experiences, and although she initially introduces herself as "Poppy" Smith, her true name is Victoria Charteris. She is portrayed as a beautiful and somewhat naive young woman seeking excitement away from the confines of her privileged life.
Meanwhile, Maria Ouspenskaya's character, Gin Sling, learns of a looming threat to her establishment. She is informed that she must relocate her casino to the less desirable Chinese sector within just a few weeks—specifically, until the Chinese New Year. Confident in her ability to fend off such challenges, she instructs her loyal subordinates to dig up information on her adversary, Sir Guy Charteris, an affluent Englishman who has recently purchased a large area of land in Shanghai containing her casino.
Dixie, while trying to navigate her tough circumstances, inadvertently becomes a key source of intelligence. She reveals that Charteris had taken her to dinner several times before abandoning her to avoid her meeting his newly arrived daughter, Victoria. From Dixie's account, Gin Sling deduces that Charteris is an individual from her past, stirring up old memories and unresolved emotions.
Victoria's innocent appearance masks her deepening infatuation with Doctor Omar, and she quickly becomes entangled in the gambling scene, developing a dangerous addiction to gambling and alcohol. Despite her contempt for Gin Sling, the casino's formidable owner, Victoria’s credit is extended to cover her increasing debts, highlighting her reckless pursuit of thrill and validation.
In a pivotal moment, Gin Sling hosts a Chinese New Year dinner, inviting both Charteris and other VIPs. Initially declining, Charteris is eventually drawn in by curiosity. During the dinner, Gin Sling unexpectedly exposes his scandalous past. It is revealed that he, then known by the alias Victor Dawson, was once married to her. Decades earlier, he had abandoned her and their child, taking her inheritance and leaving her destitute. She believed her baby had died, forced into a life of hardship to survive. Eventually, she wandered into Shanghai, where Percival Howe provided her with financial backing, allowing her to rise to her current position of power.
To further humiliate and exact revenge, Gin Sling calls in Victoria, who openly flirts with Omar and mocks her father. As Charteris escorts his rebellious daughter away, he discreetly instructs Van Elst to pick up a substantial check, revealing privately that the funds he once took from Gin Sling are actually held in her name in a bank in North China—an indication of ongoing financial dealings and possibly a hidden reconciliation.
However, Victoria defies him once more, reentering the casino where she continues to insult Gin Sling. When Charteris attempts to take her away, Gin Sling confronts him with raw emotion, ultimately revealing a shocking truth: Victoria is her own biological daughter. Gin Sling confesses that she is Victoria’s mother, a truth kept hidden for years.
The situation escalates tragically when Victoria, insulting and dismissive, antagonizes Gin Sling further. In a moment of despair and fury, Gin Sling shoots her daughter dead. Turning to her confidant, she remarks that this crime is beyond the reach of her usual influence and bribes, realizing the gravity of her actions.
The climax reaches its bleak conclusion with Walter Huston’s character, Howe, delivering a bitterly ironic line as John Abbott's character, the escort, remarks, “you likee Chinese New Year?”—a dark reference to the violence and chaos that have unfolded, symbolizing the deadly culmination of greed, betrayal, and hidden pasts in the shadowy underworld of Shanghai.
Throughout the story, themes of deception, revenge, and lost innocence are explored deeply, set against a lavish but perilous backdrop of international intrigue and moral ambiguity.
