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Formosa Betrayed is a feature film detailing the murder investigation of a Taiwanese-American professor at a Midwestern college in the early 1980s. The detective assigned to the case is a young FBI agent looking forward to an exciting career serving the United States government. However, he must solve the case before he can move on.

In his search for the murderers and their accomplices, the agent learns that there is a student spy network which focuses on the political and social activities of Chinese and Taiwanese-American students on the campus. He discovers that these “student spies” are ubiquitous on college campuses in the United States where there are Chinese and Taiwanese students.

His search for the killers takes him to Taiwan, where he learns that the suspects are members of the Chinese Mafia who have been hired by the Nationalist Chinese Government in Taiwan to silence political dissidents. He discovers that the true reason for the professor's murder was to silence an outspoken advocate of Taiwanese democracy and independence, and thus he was seen as a threat to the legitimacy of the government on Taiwan – a key U.S. ally. The hit was sanctioned by those at the highest level of power.

In his efforts to bring the killers and their accomplices to justice, he finds himself on a collision course with the U.S. State Department, the Chinese Mafia, and ultimately the highest levels of the Nationalist Chinese Government in Taiwan. In the meantime, he is aided by a mysterious woman who is tied to the Taiwanese Independence Movement and by others with competing agendas.

In the end, the detective begins to understand the complex nature of politics, identity, and power in Taiwan-U.S.-China relations – and how this relationship affects the lives and destinies of the citizens of all three countries – including his own.