In this chapter, we are introduced to the siblings of a mountain man named dao, who lives in the town of Sanqing, in the northeast of China. He is a friend of Dao's from school, and he and his sister have been living together in the same house for a long time. One day, the two of them are out for a walk, and they run into the talking fox, who is dressed in the clothes of a man named han san hu from the mental institution in which they live. The two discuss their pasts, and the fox tells them that he almost died in the previous night in the city of shan hai, but that the fox has come back the day before. He tells the fox that he has not transformed, and that he will use the "art of transformation" to conquer the city. The fox tells the story of how he almost got into a car accident, and how he was chased by strange people. He explains that he was unable to leave the city because of the women who were trying to lure him to expensive restaurants, but he was able to escape because he was handsome and had enough money to pay the bill. The talking fox tells him that the city is not suitable for him, as he has seen a mysterious human the night before, and asks if he is a spirit from outside of town.