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As a member of the Li clan of sorcerers from Hong Kong, of which Clow's mother was a member, Syaoran believes that he should be the one to inherit the Clow Cards, not Sakura Kinomoto. He first appears as an antagonist in the story, capturing a few cards for himself in the anime (though none in the manga). As the series progresses, and especially after Sakura is officially deemed the new master of the Cards, Syaoran drops his rivalistic attitude towards her and becomes her ally and friend, eventually falling in love with her and blushing at practically every sight of her. However, Sakura is completely oblivious to these feelings and thinks of him simply as a close friend.

Syaoran is shown, or at least implied, to be an excellent martial artist, swordsman (using a Chinese jian), and sorcerer. His magical abilities are centered around elemental spells using his sword or a collection of ofuda.

Although he claims certain Clow Cards for himself in the anime, Syaoran does not actually capture any Cards, as the act of capturing can only be performed using Sakura's sealing wand. However, if Syaoran has played a major role in weakening or cornering the Card entity prior to its capture, credit for the capture is awarded to him (as the materialized Card floats autonomously to its owner after capture). While Sakura writes her name in rōmaji on the Clow Cards, Syaoran writes his name in chinese characters.

Before his relationship with Sakura, Syaoran seemed to appear to have an attraction to Yukito Tsukishiro, often blushing madly and abruptly running away at the sight of him. While Sakura also harboured a crush on Yukito, Syaoran would compete with her for his affections, usually by getting him a better present, making him better food, or giving the better compliment. As he shows no interest in Sakura in the first season, the impression is given that he and Sakura are rivals, for the cards and for love. It is discovered later that Syaoran was just magically attracted to the magical energies of the moon which were residing within Yukito as Syaoran drew his magical power from the moon. Sakura, although she was drawn to a person that housed "power", was truly in love with Yukito, stated by Kero (or Cerberus) in episode 51 (Sakura and the big teddy bear).

Syaoran and Cerberus often fight in the series, where Syaoran often calls him a "plush toy", or a "stuffed animal", while Cerberus retorts with patronizing terms like "kid" (小僧, kozō?).