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The story takes place in a small remote village named Guajiatai (or Rack Armor Terrace) near Shanhaiguan, Hebei at the end of the War of Resistance Against Japan. One night, a mysterious man brings two captives in sacks (Japanese soldier Teruyuki and translator Dong Hanchen) to the doorstep of a peasant's (Ma Dasan) home and threatens Ma to keep them until he returns to pick them up on New Year's Eve. Fearing both the mystery man and the Japanese, the whole village falls into a dilemma over what to do with the two prisoners. The film is inspired by the novel Survival by You Fengwei, and was greatly modified during the process of adaptation. This film shelved the theme of "the brave resistance against Japanese aggression" in the original literature, and focused on the themes of "the ignorance of the peasants" and "the absurdity of the war." Contrary to its title, Devils on the Doorstep is not at its core an anti Japanese war film. In Jiang's own words, the film shows how Chinese literature and film has perpetuated an attitude of blaming the aggressor and casting the Chinese population as passive victims of aggression. Jiang hoped that the film illuminates this common human psychological trait of blaming others for disaster that goes beyond Chineseness. Jiang Wen explained the reason why he made Devils On The Doorstep. The film not only reproduces the atrocities committed by the Japanese army during the time in which it was set, but also acts as a warning. In the film, the Japanese army massacres many Chinese people. Such a tragedy once happened in Jiang Wen's hometown Tangshan. By making the film, Jiang wanted both Chinese and Japanese audiences to face history. According to director Jiang Wen, Ma is initially very fearful but does not know the origins of his fear. The turning point comes when he sees his village in flames and his fellow villagers massacred. He then overcomes his own fear and begins longing for death. In the final scene, Ma dies a satisfying death as he has fulfilled his desire. Later, however, a general manager from the same company told a reporter that the initial budget was US$2 million, but the final expenditure exceeded this number by over 30 percent. The Japanese cast members in the film, two of whom came to know Jiang while on exchange in the Central Academy of Drama in the 1980s, initially expressed concerns with the Japanese war crimes depicted in the film. Jiang spent two weeks discussing the issue with them, and showed them documentaries about the war, including some made by Japanese filmmakers. According to Jiang, the Japanese cast members eventually came to trust him. Jiang also used many non professional actors and actresses in the film, some of whom were also members of the crew. Jiang himself also played the leading role in the film, which he admitted was a tiring experience. He said he also came to distrust what most of the crew members said about his acting, especially when they were tired and wanting to finish for the day.

Though it was released in 2000, Devils on the Doorstep is filmed almost entirely in black and white — except for the last four minutes, during which Ma is executed. As his head rolls to the ground, the cinematography not only changes from black and white to color, but the camera perspective also shifts from a neutral third person point of view to the first person perspective of Ma's severed head. In an interview, director Jiang Wen explained that the reason for filming in black and white was to mimic the nature of historic photographs and make the film indistinguishable from its counterparts made before the advent of color cinematography. Monochrome cinematography also contrasts with the artificiality of the bright colors characteristic of Fifth Generation Chinese cinema. Devils on the Doorstep often alternates between extreme long shots and close ups. These long shots, contrasted with extreme close ups that fiercely frame characters' faces yet exclude the object of their gaze, or focus on details such as a pair of military boots, a sword or other mundane objects, create a fragmented vision that reflects the protagonists’ confusion. This type of cinematography can be compared to the style of a detached documentary that intends to lead viewers to comment on the images they are seeing rather than hook viewers with strong emotions. In the early scenes of the film, hand held cameras are used to accentuate certain comic episodes, one of which includes a scene where two Japanese soldiers chase a chicken into Ma Dasan's courtyard. The scene plays out chaotically as Ma desperately tries to keep the soldiers away from the outer room where the two prisoners are being held. A hand held camera is also used for a more somber effect at the end of the film when the massacre of the villagers is shown. To contrast, the films’ use of camera is much more subtle in the many interior shots in the early part of the film.

The version shown at the 2000 Cannes Film Festival was three hours long. This was a working version that was later cut to 139 minutes with director Jiang Wen's full participation in order to enhance the film's commercial prospects and to tighten the storyline, which he did not have time to do before the Cannes premier. The film was booked for showing on 3 November 2014 at the Cornerhouse Manchester (UK) as part of Asia Triennial Manchester 14, and a 161 minute version arrived, somewhat to the organizers' surprise. The film was well received at this screening.

Time Asia reported that the Chinese Film Bureau was furious at Jiang for having entered the film in the Cannes Film Festival without its permission. The Film Bureau reportedly sent two officials to Cannes to try to dissuade the festival from screening Devils on the Doorstep and demanded that Jiang hand over the negative (which was brought to Australia for post production). There were also reports from Asian film circles that the authorities planned to punish Jiang by forbidding him to work in China for seven years. A representative from the Chinese Film Bureau confirmed that Jiang's status was "under review" and that China suspected Jiang was awarded his prize at Cannes for "political reasons". The film was subsequently banned in China by the Chinese Film Bureau. It was not known publicly if the seven year ban was eventually imposed, but Jiang did not produce any directorial work between Devils on the Doorstep and the 2007 production The Sun Also Rises. However, he did act in several films, including The Missing Gun (2002), which was a huge commercial success in China. He was also nominated for Best Actor in the official Huabiao Awards in 2004 for his role in Warriors of Heaven and Earth (2003). The ban was eventually lifted and the film has been commercially available in China since. According to director Jiang Wen, both the Japanese producers of the film and the Chinese Film Bureau expressed similar concerns: "Don't let Japanese soldiers kill people; Chinese people shouldn't be so dumb; Japanese soldiers shouldn't be kept as prisoners." A report confirmed that the authorities complained that "Chinese civilians [in the movie] don't hate the Japanese [prisoner]", but instead are "as close as brothers" with the latter. Jiang was thus accused of having belittled the Chinese whilst beautifying the Japanese.

Devils on the Doorstep was commercially released in Japan on 27 April 2002, further delaying a possible lift of ban on the film in China. All major newspapers in Japan gave the film mostly positive reviews. The liberal leaning Asahi Shimbun said the film "illustrates and examines the weakness of human nature". The Mainichi Shimbun called the film Jiang's "overarching question on human nature". The conservative Yomiuri Shimbun also complimented Jiang, Kagawa Teruyuki and Kenya Sawada, saying their acting was "colorful" and "believable". Inevitably, however, some reviewers voiced displeasure after viewing the film, saying that it "further estranges the Sino Japanese friendship that was seriously damaged in the past war". Many Japanese media reports on the film also mentioned Jiang's past visits to the controversial Yasukuni Shrine, where spirits of Japanese soldiers, including some convicted of war crimes, are housed. The news sparked a new round of debate in China, where criticism of famous actress Zhao Wei for appearing on the cover of Bazaar in a dress with a Japanese military flag design had newly subsided. Jiang responded that he visited the shrine several times to collect resources for Devils on the Doorstep.

According to Box Office Mojo, Devils on the Doorstep opened in a single cinema in the United States on 18 December 2002. In its 65 days in theater, the film grossed a meager US$18,944. Devils on the Doorstep was screened at the National Film Theatre in London, United Kingdom on 28 March and 29 March 2006. A dialogue between Jiang Wen and British director Anthony Minghella (The English Patient, The Talented Mr. Ripley) was initially arranged to take place after the screening on 28 March, but Jiang was eventually unable to be present. After watching the film, Minghella gave it positive remarks, calling it "candid, calm, yet filled with danger".

Apart from the Chinese different versions, Fortissimo Films distributed a DVD version in Japan and 35mm copies for international releases. A DVD featuring subtitles in English and an introduction by American director Steven Soderbergh (Traffic, Ocean's Eleven) was released on 19 April 2005 in the United States by Home Vision Entertainment.