Kurt Russell confessed on the DVD commentary that he was afraid of starring in the movie because he had made a string of movies that flopped at the box office. When he asked John Carpenter about it, he told Kurt that it didn't matter to him - he just wanted to make the movie with him.
The Chinese characters in the main title translate to "Evil Spirits Make a Big Scene in Little Spiritual State."
The Three Storms were partly the inspiration for the popular character of lightning god Raiden from Mortal Kombat fighting video game series, while David Lo Pan was the inspiration for the evil sorcerer Shang Tsung. And the three storms was inspired by the Lone wolf and cub movie.
John Carpenter envisioned the film as an inverse of traditional scenarios in action films with a Caucasian protagonist helped by a minority sidekick. Jack Burton, despite his bravado, is constantly portrayed as rather bumbling; in one fight sequence he even knocks himself unconscious before the fight begins. Wang Chi, on the other hand, is constantly portrayed as highly skilled and competent.
Jackie Chan was John Carpenter's first choice to play Wang Chi, but producer Lawrence Gordon was highly against it, fearing Chan's English wasn't good enough after seeing his performances in Battle Creek Brawl (1980) and The Protector (1985), but Carpenter wanted Chan after the success of Police Story (1985). Chan declined and Dennis Dun was cast instead.