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.
See also “Ang Lee to shoot WWII China thriller” by Xinhua News Agency (link)