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Ambush Entertainment's Matthew Leutwyler and Miranda Bailey have formed a partnership with Woo-ping Yuen's Hong Kong-based FilmCan Production on "Garnet on the Golden Sand," a martial-arts film that the action master will direct.

Jun Tan penned the original script. Story follows a 17th century European merchant and two Chinese swordsmen who are recruited by the leader of a prosperous trade town on the Silk Road to fight off a notorious desert raider.

Pic will shoot in China next summer.

"Miranda and I have been looking for the right project to take our first step into the Asian market, and after meeting with Master Yuen to discuss Jun's script, we knew we had found the perfect match," Leutwyler said.

Yuen has directed films dating back to "Drunken Master" and "Iron Monkey" and done the fight choreography on pics including "Kung Fu Hustle," "Kill Bill" and "The Matrix" series.

L.A.-based Ambush, which previously produced "The Squid and the Whale," has teamed with its financing arm, Cold Iron Pictures, on several recently completed projects. They include the Richard Levine-directed "Every Day," with Helen Hunt and Liev Schreiber; the Matthew Broderick-Sanaa Lathan starrer "Wonderful World," which will be released by Magnolia; and "Against the Current," which stars Joseph Fiennes, Mary Tyler Moore and Justin Kirk and will be released via IFC Festival Direct, the movies-on-demand platform from IFC Films.