From Comingsoon Net (link):
Ang Lee has pacted to make his second consecutive film, following his Academy Award win for directing Brokeback Mountain, with Focus Features. Lee will next direct Lust, Caution(Ëâ≤Êàí), an espionage thriller set in WWII-era Shanghai. Bill Kong, who previously produced Lee’s hit Crouching Tiger, Hidden Dragon(ÂçßËôéËóèÈæô), will produce the new film with the director. Focus Features CEO James Schamus, who will executive-produce Lust, Caution, made the announcement today.
The Chinese-language feature is being scripted by Wang Hui-Ling, who previously co-wrote Lee’s Eat Drink Man Woman (È•ÆÈ£üÁî∑Â•≥)and Crouching Tiger, Hidden Dragon. Lust, Caution is being adapted from a short story by the late Chinese author Eileen Chang(Âº†Áà±Áé≤). Focus will hold worldwide rights to the film, excluding Asia. Overseas sales and distribution will be handled by Focus Features International. Production is anticipated to begin in the fall.