The fight scene between Ip Man (Donnie Yen) and the Muay Thai master occurs in the devastated, Japanese-occupied streets of Foshan. It's a brutal public spectacle orchestrated by the Japanese General Miura, who is seeking to humble Chinese martial arts by having Ip Man fight his champions.
This particular opponent is one of the General's most formidable recruits, a powerful and highly skilled Muay Thai practitioner. The atmosphere is tense, filled with the desperation of the local Chinese population and the oppressive presence of the Japanese military.