Yuan (ユアン) is a central antagonist of Shenmue II on the Sega Dreamcast and Microsoft Xbox. He is a high-ranking executive of the Yellow Head gang that operates in Kowloon. He is an effeminate gay cross-dressing man and there are several allusions that he is in a romantic relationship with the Yellow Head leader Dou Niu. This is speculated why he is a top executive of the gang. He often blackmails Kowloon's shopkeepers as they are all afraid of him and Dou Niu.

Yuan is somewhat eccentric and is easily recognizable in Kowloon due to his dress-sense, he also enjoys collecting knives and seems quite clumsy when flustered, particularly in his confrontations with Ryo and Ren.

He hates filthy things and compulsively cleans anything dirty, messy, or smelly. He is also a practitioner of the Mantis Dagger Fist, but is weak in hand-to-hand combat and uses a lot of weaponry like metal pipes, knives, and even chainsaws.

When Ryo and Wuying Ren infiltrate the Yellow Head Building to rescue Yuanda Zhu, Yuan tries to kill them both with a chainsaw. Ultimately, this fails with Ryo kicking Yuan into an elevator. Yuan hates filthy things, so Ren orders him to tell them where Yuanda Zhu is, otherwise a can of trash will be kicked on him. Yuan tells them, but Ren kicks the trash on him anyway. Yuan then screams hysterically with the trash all over him.

Yuan also shows signs of being mentally unstable due to him attempting to kill Ryo and Ren with the chainsaw (he actually does kill them if the QTE is failed but it is a non-canon game over scene, but it should be noted that he would have done it without compassion if they didn't successfully defend themselves). He also was willing to torture Yuanda Zhu's aide, Shiquin Zhang. He also stated that he was going to make him "spill his guts".

In the original Japanese Dreamcast version of Shenmue II Yuan was a cross-dressing man; however in the European Dreamcast and Xbox versions of the game, he was given a woman's voice and was referred to as a female.

He is voiced by Takahiro Sakurai in the original Japanese version, an unknown actress in the European Dreamcast version, and Lisle Wilkerson in the English speech Xbox versions.