He was portrayed by Yu Rongguang.
Master Li is the Chinese counterpart of John Kreese from the original Karate Kid trilogy. Master Li is the owner of the Fighting Dragons Kung Fu studio, which teaches its students to break bones and be merciless. One day, Dre Parker and his apartment's maintenance man, Mr. Han, interrupt a class, due to an earlier incident when six students from the studio nearly killed Dre. Li and Han argue, before Han sees a way to get Dre to defeat Li's students fairly: an open Kung Fu tournament. Master Li agrees, and from Han's advice, tells his students to stop bullying Dre until the tournament. Li then tells Dre to train and not be late for the tournament; if he is late, the bullying will only get worse. Later, Master Li tells one of his students to break Dre's leg and said student succeeded in doing so but got disqualified in the process. Master Li congratulates Han for getting Dre back on the tournament and Cheng challenges Dre. However, in the end, Master Li lost all his students to Han after losing to him in a fight. It is unknown what happened to Li afterwards, though it's possible he was sent to prison for what he was teaching his students.
- In a deleted scene, Master Li was angry at Cheng for losing to Dre but Han fights Li and subdues him to make him calm (mirroring the ending of the original movie). Li was seen resting angrily, and later got punched by Dre's mother as retribution for ordering his students to attack her son. It got removed apparently because it would have taken too much focus away from Dre's victory.
- In the biggest twist of irony, despite being the titular martial art, neither Li nor the other characters of the film are shown using karate to fight, using kung fu instead. Indeed, back when the remake was in development, Sony considered to change the title to reflect this, but the franchise producer Jerry Weintraub rejected the idea, possibly to keep the title in line with that of the previous films.