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Exiled To Shanghai follows newsreel cameraman Ted Young, who returns home to New York from an exciting assignment overseas, covering the war in Spain. Ted learns, to his dismay, that rival photographer Charlie Sears (the same Charlie he had doublecrossed out of the Spain assignment) is now his boss. The vindictive Sears immediately sends Ted on a fluff assignment - to interview a recent sweepstakes winner. Rushing to get the assignment in the can, he accosts the wrong Miss Jones, photographing the lovely and spirited Nancy Jones instead. Nancy, a small-town school teacher desperate to escape her boring life, has just won a different contest and a trip to New York sponsored by the brand new Supreme Television Network. In the wake of the mix up, Ted loses his job at the faltering newsreel company but decides to pursue a very progressive idea - news broadcasts on television.