In a New York City dance club, a teenage Chinese girl, named Tyan "Tye" Hwa (Sari Chang), meets and dances with a teenage Italian boy, Tony Monte (Richard Panebianco), much to the consternation of the many other Chinese and Italians in the club. Tye's protective older brother, Yung Gan (Russell Wong), and his friends chase Tony out of the club and through the streets. Tony makes it to Canal Street, the dividing line between Little Italy and Chinatown, and thinks he is safe. After some hesitation, the Chinese gang crosses the border and chases Tony through Little Italy. When Tony runs into an alley and finds a locked gate, it looks like he is about to be beaten with bats and chains. Just then, Tony's older brother, Alberto "Alby" Monte (James Russo), and his friends show up. A fight ensues, but police arrive and everyone runs away. The next day, Tye's girl friends encourage her to go back to the club to see if Tony is there. However, Yung Gan tells her to socialize in their own neighborhood or stay home. Meanwhile, Alby comes into the pizzeria where Tony works and tells his brother to stay out of Chinatown. A Chinese restaurant, the Canton Garden, has just opened in Little Italy, replacing an Italian trattoria. A Chinese gang, led by Yung Gan, comes into the restaurant demanding weekly protection money, telling the owner that being in Little Italy does not mean he can avoid the paying the gang. They steal the $150 in the cash register and tell the owner to bring the remainder owed in the morning. However, when they get back to their car, an Italian gang arrives and starts beating them up. An older Chinese man, named Gung Tu (James Hong), tells Yung Gan that he must be patient. Twenty years ago, the Italians "owned" forty blocks north of Chinatown, but now they only "own" three. Gung Tu predicts that in five years, the Italians will be completely gone, but in the meantime, he advises that peace is good for the neighborhood and bloodshed is bad. Yung Gan heeds the advice and tells the other gang members not to fight the Italians or give the Canton Garden owners any problems. That night, as Tye sits on the fire escape outside her family's apartment, Tony comes into the alley and properly introduces himself. He invites Tye to meet him the next night at the 13th street subway station. Tye and Tony go to the Midtown Cat Club (where no one knows them) where they spend the entire night dancing together. The next day, Alby visits Enrico Perito (Robert Miano), a middle-aged businessman, in Little Italy. Perito tells him that the problem with the Chinese will be handled and to stay out of it. That night, a group of Chinese youth throws a bomb into the Canton Garden restaurant. Upset over the damage to people and stores on the block, Alby gets a gun and goes to Chinatown to retaliate. Also angry about the bombing, Yung Gan and the Chinese gang confront the rogue gang members who threw the bomb. The two factions of the Chinese gang get into a knife fight just as Alby and his friends drive up, firing a machine gun. When the Chinese run away, the Italians give chase. Alby gets cut by a Chinese teenager with a knife. Alby's friend, Johnny Mercury (David Caruso), fires his machine gun into all the buildings in the area. The wise elder Gung Tu meets with Enrico Perito, saying they must control their youth. Later, Yung Gan stabs the young man who threw the bomb into Canton Garden. When the man pulls the knife out of his stomach, Alby and a group of Italians come up from behind and stab him in the back, killing him. They hang his body from power lines over the intersection. The next day, Tony and Tye meet for dinner. She worries what will happen if people find out about the two of them. He tells her nothing matters but the two of them and they cannot let others run their lives. That night, they make love for the first time. The next day, Johnny Mercury begins harassing the owner of the Canton Garden, who has a food booth at an Italian street fair. Tony tells Mercury that the Chinese do not deserve to be harassed. Mercury wonders why Tony is suddenly defending the Chinese. Tye and Tony meet in an alley, but Yung Gan and other gang members catch them together and pull a knife on Tony. Two policemen on horseback arrive, telling them to go their separate ways. As they walk back home, Yung Gan slaps Tye in the face. Some Chinese gang members stab Alby in the stomach and he dies in the hallway of his apartment building. At Alby's funeral, Enrico Perito promises vengeance for Alby's death. Tony questions how killing someone else will bring his brother back. After the funeral, Tony stands in front of Tye's apartment building, yelling for her to come to him. She rushes outside into his arms. Yung Gan confronts her, but Tye says she loves Tony. Yung Gan orders her back inside, saying they are going back to Hong Kong, but she refuses. Yung Gan tells Tye she is no longer Chinese. Tye and Tony walk through the streets together, openly showing affection for each other. One of the rogue Chinese gang members shoots both Tye and Tony in the middle of the street, killing both of them.
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