In another of the many conflicts between the two rival states Lao Tzŭ entered the battle, whereupon Ch’iung Hsiao, a goddess who fought for the house of Shang (Chou), hurled into the air her gold scaly-dragon scissors. As these slowly descended, opening and closing in a most ominous manner, Lao Tzŭ waved the sleeve of his jacket and they fell into the sea and became absolutely motionless. Many similar tricks were used by the various contestants. The Gold Bushel of Chaotic Origin succumbed to the Wind-fire Sphere, and so on. Ch’iung Hsiao resumed the attack with some magic two-edged swords, but was killed by a blow from White Crane Youth’s Three-precious Jade Sceptre, hurled at her by Lao Tzŭ’s orders.

Pi Hsiao, her sister, attempted to avenge her death, but Yüan-shih, producing from his sleeve a magical box, threw it into the air and caught Pi Hsiao in it. When it was opened it was found that she had melted into blood and water.