Shang-Chi 2: will the Atlas Foundation be the villains?

A report from The Cosmic Circus laid out what Marvel Studios reportedly had in mind for Shang-Chi 2. It points to the Atlas Foundation as the possible villains and Jimmy Woo as a key player. The same report said Shang-Chi would appear in Avengers: Doomsday and Avengers: Secret Wars. Even so, I don't believe Shang-Chi 2 is coming until after Secret Wars.

Shang-Chi and the Legend of the Ten Rings (2021), starring Simu Liu, Awkwafina and Tony Leung, introduced the character. A sequel was confirmed with Simu Liu returning, but at the time it had not arrived.

Why Shang-Chi 2 seemed tied to the scrapped Kang plan

Like several Marvel Cinematic Universe projects, Shang-Chi 2 should have arrived by now. Destin Daniel Cretton, who directed the first film, was supposed to return to direct it. If Marvel Studios had stuck with its original plan for Kang the Conqueror, we most likely would have gotten Shang-Chi 2 by then, or it would have been coming out very soon.

That's because Marvel Studios brought Cretton on to direct Avengers: The Kang Dynasty. With Shang-Chi 2 already confirmed, he would most likely have made the second film before Kang Dynasty or immediately after, connecting the Ten Rings with Kang technology. The same goes for Kamala Khan's bangle, which was also believed to be Kang tech and was linked to the Ten Rings in the Ms. Marvel series.

Much of that was scrapped. There was no Kang Dynasty anymore, and no Kang. Marvel might give us a little Kang in Avengers: Doomsday to show that Doom is the new threat, but much was unclear, including the Ten Rings connection to Kang, Shang-Chi's role in the next Avengers films, and whether a sequel was still planned.

Why I think Shang-Chi 2 lands after Avengers: Secret Wars

Shang-Chi is one of the newer characters who is most likely going to survive the ending of the Multiverse Saga. When the MCU goes into its soft reboot, some characters won't make it to the new universe. Most likely those will be the ones who have been around for a while, like Chris Hemsworth's Thor, Mark Ruffalo's Bruce Banner and perhaps Benedict Cumberbatch's Doctor Strange.

Others definitely will make it, like Spider-Man and Shang-Chi. Since he's so new and the first film was such a success, Shang-Chi is most likely going to make it through. Given that, whatever Marvel Studios does between the Fantastic Four film and Avengers: Secret Wars will most likely focus on the overall story of Doom.

Alex Perez reports Shang-Chi will join Avengers: Doomsday and Secret Wars

The good news is that Alex Perez, who wrote the article for The Cosmic Circus, said Shang-Chi will be part of Avengers: Doomsday and Avengers: Secret Wars. He wrote: "sources have informed me that simu is expected to return to the Marvel Cinematic Universe for the next installments of the Avengers franchise." On the specifics of the role, he said Shang-Chi would be called upon to join the fight by the current Sorcerer Supreme, Wong.

That doesn't come as a huge surprise. The last time we saw Shang-Chi and Katy, they were with Wong talking to Bruce Banner and Captain Marvel, and no doubt this is how they'll be brought into the new Avengers team. It makes total sense, and Marvel already set it up.

I'm also assuming the Ten Rings will play a part in the Doom story in some way. Marvel still could connect them to Kang. If, as we believe, Doom kills Kang, Doom could take the technology Kang built and might gain access to Shang-Chi's Ten Rings, an easy route into Doomsday. Marvel has changed plans for some characters; we've heard Moon Knight probably won't appear in the Avengers films but could turn up in a Midnight Suns project after Secret Wars. So it's nice to hear Shang-Chi is in.

The Atlas Foundation could be the Shang-Chi 2 villains, per the report

Perez has heard a good deal from different sources about Shang-Chi 2. He noted that most of his "what I heard" articles pan out but sometimes they don't, so this should be taken with a grain of salt. He said several sources told him the idea for the next solo outing involves the Atlas Foundation as potential villains, allowing the Agents of Atlas to form during the film or afterward.

The two are different: one is good and one is bad. In Marvel Comics, the Atlas Foundation is one of the oldest secret organizations in history, formed around the twilight of the 14th century by descendants of Genghis Khan who sought to continue the Mongol Empire's legacy and conquer the world. They built dominance through business fronts across industries, researched magic and science, and grew a criminal network around the world.

This isn't Xialing's new organization, though she will play a big role in Shang-Chi 2. The Foundation's leaders were direct descendants of Genghis Khan, and its most notable figures include a leader known as Golden Claw and his successor Jimmy Woo, plus a dragon adviser named Mr. Lao. In the comics, Jimmy's parents moved to America to keep him out of the Foundation, but it found him and took him under its wing. Mr. Lao eventually ate his mentor, and Jimmy took over, vowing to use the organization to benefit the world.

How Wenwu's death could draw the Atlas Foundation out

That isn't what has happened in the MCU, but Perez explained how the pieces might tie together. One theme sources described was the impact of Wenwu's death after the first film. Wenwu, the Mandarin, created and led the Ten Rings for over a thousand years. His sacrifice and Xialing taking over would send ripples across criminal organizations worldwide, and none would be more interested than the Atlas Foundation.

According to Perez's sources, the Ten Rings has a rivalry with the Foundation dating back to the 13th century, when Genghis Khan rose to power and the Mongol Empire began its conquest of China and India. Wenwu and Khan would have been mortal enemies whose armies waged war for decades, with Wenwu winning. Afterward the Mongols would have found Mr. Lao, who advised them to go underground and slowly build what became the Atlas Foundation.

With Wenwu dead, the idea was that the Foundation would step into the spotlight while the Ten Rings were vulnerable. The Golden Horde, the Foundation's warriors, would attack the Ten Rings headquarters and potentially try to take out Xialing, which would bring Shang-Chi back into the picture.

Jimmy Woo, Mr. Lao and a possible Agents of Atlas lineup

Perez's sources also said agent Jimmy Woo would be involved, pursuing the mysterious Golden Claw, and together with Shang-Chi would uncover the conspiracy behind the Foundation. The sources said Marvel might also be looking at background for Mr. Lao, which would further deepen the connections between Ms. Marvel's Clandestines and the Ten Rings. The plot would let Marvel introduce the Agents of Atlas, with Jimmy Woo taking over the Foundation.

Perez heard that Amadeus Cho, who was going to be played by Logan Kim in Captain America: Brave New World before being cut at the last minute, might join. He also heard Iron Fist and Luna Snow could be on the roster. Another insider separately reported hearing that Luna Snow is coming to the MCU, which makes sense given her popularity in Marvel Rivals at the time.

I still think this comes after Avengers: Secret Wars, because this story doesn't seem to fit the overall Multiverse Saga. Yes, a new company with Atlas in its name was registered by Marvel Studios, but I still don't believe that's going to be Shang-Chi 2.