A masterpiece. No other superlative comes close to describing Ang Lee's Crouching Tiger, Hidden Dragon.

This film is a hauntingly romantic epic which dazzles the senses and fires the soul.

Set in the dawning 19th century in the twilight of the Qing dynasty, it centres on warriors Li Ku Bai (Chow Yun-Fat) and Yu Shu Lien (Michelle Yeoh), reunited when Li's Green Destiny sword is stolen by arch-enemy Jade Fox.

Laying a trap for the wily foe, Li and Yu encounter a governess (Cheng Pei-Pei) and her aristocratic ward Jen (Zhang ZiYi). She is betrothed to outlaw Lo (Chang Chen) but will abide by parental wishes for a loveless arranged marriage.

Yu senses a sinister amity between the two women and as she wins the trust of young Jen she learns the dark truth about their friendship, and the governess's true identity.

Lee turns the martial arts genre on its head, marrying the jaw-dropping choreography of the action sequences with breathtaking cinematography and heart-breaking romance.

Stunt co-ordinator Yuen Wo Ping uses vaulting wire work to allow the actors to defy gravity, walk on water or skip across rooftops in pursuit of one another.

The martial arts become a beautiful dance replete with flurries of swift limb movements and brilliant flashes of samurai swords.

Fluid camerawork and Peter Pau's stunning photography place the viewer in the thick of the action - but for all the film's mesmerism, it touches on universal themes like being true to yourself and the pursuit of love.

Yun-Fat takes a back seat to Yeoh and ZiYi, whose struggle to accept their forbidden love provides the film with its emotional centre. Their fierce showdown provides the picture with its showstopping finale.

Performances are exquisite - newcomer ZiYi is a stand-out - and scenes between Yun-Fat and Yeoh are almost unbearably tense.

As the New Year dawns, Crouching Tiger, Hidden Dragon stakes a compelling claim to the best film of 2001. It will take something very special indeed to surpass it.