In Das Land des Lachelns (The Land of Smiles), two young people from different cultures meet: during his sojourn in Vienna, the Chinese diplomat Prince Sou-Chong meets Lisa, who is from an aristrocratic family. The two are attracted to one another and fall in love. When Sou-Chong is appointed Chinese prime minister, Lisa follows him to Peking, where she is confronted with strange customs and ancient traditions that pur her love for Sou-Chong to the test. In the end, it becomes clear that the two worlds are incompatible and will not allow the pair to share a future.

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