Eventually, the Mandarin's memories return to him. The Mandarin believes that the feudalism of yesterday has merely been transformed into the capitalism of today, leading him to set into motion plans to create a giant flying fortress called the Dragon of Heaven, through which he can conquer Russia and eventually the world. During this time, Iron Man reappears after being believed dead in a battle against the psychic menace Onslaught. The Mandarin initiates a series of attacks on Iron Man, culminating in a battle with the Dragon of Heaven. Eventually it is revealed that the Mandarin's primary purpose is not to conquer Russia, but instead to test Iron Man himself, prove him worthy as a foe, and to justify the Mandarin's own thoughts on the feudal nature of capitalism. The Mandarin appears to die as the Dragon of Heaven explodes, but Iron Man is not convinced that his foe has truly met his end.