Lau would have the advantage, because I think Lan Di would be too shocked at a Virtua Fighter coming to life. In fact, he might even think it's some sort of magic caused by whatever secrets Shenmue 3 was to reveal. Remember, Lau is a fictional character in the Shenmue world, and his face is all over Tomato Mart, the scroll shops and capsule machines. Lan Di would be like "What sorcery is this!?" and Lau would be like "I was magically brought here by the dragon and phoenix mirrors, let me show you how to unlock their power!". Then when Lan Di lets his guard down, Lau attacks.