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Michelle is a half-Chinese half-Native American female from Arizona and the foster mother of Julia Chang. Her father was killed along with the rest of the tribe by Heihachi Mishima's forces, who were searching for a treasure, a pendant that allegedly could control and subdue great powers and spirits. The pendant was coveted by Heihachi. When the Mishima Zaibatsu forces had left, Michelle's father gave Michelle the pendant before dying. Michelle entered the King of Iron Fist Tournament to seek vengeance on Heihachi for the murder of her father and tribe. Michelle also encountered Kunimitsu, a treasure hunter that was seeking the pendant. Michelle defeated Kunimitsu and secured the amulet. Although she did not win the tournament, Michelle was still satisfied that another fighter (Kazuya Mishima) defeated Heihachi.
(Source: Tekken Wikia)