Mr. Xao first met Daniel Rand and Jeryn Hogarth when he tried to commission a Maglev (magnetic-levitation) train from Rand’s company. Danny had a bad feeling about him and refused despite Jeryn’s disapproval. Danny soon found out his suspicions were correct when he went to investigate the company Mr. Xao supposedly worked for and found it to be a front for the terrorist organization known as Hydra. While Iron Fist was occupied with other business, Xao kidnapped Hogarth and his mother and took them to a secluded area in the K’un-Lun mountain range on Earth. Danny’s friends, Luke Cage, Misty Knight and Colleen Wing gave chase, but they too were captured by overwhelming forces. Xao’s intention, once the train was finished, was to load it with explosives and destroy K’un-Lun to avenge the deaths of his great-grandfather, grandmother and so many others of his bloodline. He almost succeeded, but Xao did not count on the resourcefulness of his enemies. The timing could not have been worse for Xao because his plan was occurring at the same time of the sacred tournament between the Seven Capital Cities of Heaven. Each city combined made up the Heart of Heaven, and each city had a champion to represent it in the tournament. Iron Fist along with the Prince of Orphans rallied the other Immortal Weapons to their cause, and defeated Xao and Hydra. As his plans fell apart, Xao stood face-to-face with Iron Fist while on the edge of a cliff and revealed to him that there is an Eighth Capital City of Heaven. Xao, surrender not an option in his mind, fell silently over the edge to his demise.