He exchanged a diamond for the ash remains of Nurhaci - an important Manchu chieftain who rose to prominence in the late 16th Century in what is today northeastern China - at Club Obi-Wan (a reference to Star Wars). But Lao betrays Indy, his son Chen killed Indy's friend Wu Han and poisoning him to get both the ashes and the diamond. Indy fights back and kills Lao's son Chen. Indy escapes the club and gets the antidote with Lao chasing after him. Indy drives away with Willie Scott - a singer at the club - and Short Round. With Lao and the other gangsters shooting at him and him shooting back, Indy escapes on a plane which, unknown to them, is owned by Lao. Lao, laughing in assumed triumph, says goodbye to Indy and waves to the pilots, who later leave the plane to crash in the Himalayas. However, Indy and his allies ultimately survive.
Lao and his sons at their nightclub, the Club Obi Wan.
Watching as Indy drinks the poison.
"Don't be sad, Dr. Jones. You will soon be joining him."
During the early development of Indiana Jones and the Kingdom of the Crystal Skull, many fans asked Steven Spielberg to bring back Lao Che, with Chiao reprising his role. Chiao expressed his interest in return for the fourth film and Ric Young expressed his interest in reprise his role as Kao Kan. However, Lao's inclusion was scrapped after Chiao's untimely death.
So far, Lao Che and Kao Kan is one of the few Indiana Jones villains who got away scot-free, as while he never manages to defeat Indy, he and Kao Kan never receives any punishment for his actions and crimes (which include from committing murder to blackmail). The events of Indiana Jones and the Temple of Doom end with him still alive and active.