The story starts in New York City's Chinatown, Manhattan, where Big Bird peeks at an old scroll with a picture of a beautiful phoenix on it. The shopkeeper explains that the phoenix is magical and lives in China. To find the phoenix, Big Bird will first have to find the four places pictured on the scroll. Big Bird thinks, "Well, what a good thing it would be if a great big American bird went to meet that beautiful Chinese bird! I mean, she could tell me everything about China, and then I could come home and tell everybody here!" He sets out with Barkley on a boat and makes it to China.