In the 3 years after Lord Brevon's defeat, Shang Tu comes under attack from increasing robot attacks from an unknown source. Searching for capable fighters to help defend his city, the Magister recruits Team Lilac to counter the attacks and discover their origin, which will eventually lead them to Merga, the Final Ember who seeks vengeance upon the three kingdoms by exposing dark secrets and unleashing the ancient superweapon, Bakunawa.
The name "Shang Tu" comes from Chinese, potentially 上土 (speculation, as the characters are never shown in-game), meaning "On Earth".
It seems likely that Blue is the national color of Shang Tu.
In the Royal Palace, there is an arrow impaled in the left column closest to the Magister. This may be a reference to East-Asian Culture, where people used arrows to send messages to Royal Families in high places.
The Magister in the Audience Chamber during Freedom Planet.
A side view of Shang Tu and the Royal Palace, before. . .
. . . and after Team Lilac breaks out of prison!
Palace Guards Doug, Guang and the Duck Guard, saluting Lady Neera
The Royal Palace at nighttime, with the Magister witnessing the Kingdom Stone's transformation
Beta map of Shang Tu in Freedom Planet 2
Beta Map of Shang Tu in Freedom Planet 2, featuring the Royal Palace
The Pub/Bar area of Shang Tu.
Lilac riding Pangu in the halls of the Royal Palace.