For the purpose of this discussion, a stipulation must be made: The comment in a later book that Li Xunhuan would always win because he fights on the side of righteousness and justice is to be ignored (mostly because it's just mumbo jumbo).
It's generally accepted that Shangguan Jinhong is superior to Li Xunhuan, because of this passage:
But the more I think about it, the more I have doubts. In that fight, Shangguan Jinhong had two huge advantages over Li Xunhuan, which were stated in the book itself:"Indeed, he had many chances to kill me. He really could've forced me into a situation where I couldn't even defend myself. But he let the opportunity pass." Li XunHuan said.
But for someone like ShangGuan JinHong, why would he willingly give up an opportunity like that?
Sun XiaoHong couldn't help but ask either, "Why was that?"
Li XunHuan smiled and said, "Because he wanted to take a gamble."
A spark suddenly shot into Sun XiaoHong's eyes as she said, "He must've not believed in the saying that 'Little Li's flying dagger, once released never misses its target!'"
"He didn't believe it - he didn't trust anyone, there was not a single thing in the entire world that he trusted." Li XunHuan said.
"And the result?" Sun XiaoHong asked.
"He was defeated!" Li XunHuan said.
1) The presence of Jin Wuming. Jin Wuming's very presence was a huge advantage to Shangguan Jinhong, both psychologically and tactically.
At this point in the novel, Ah Fei was the equal of Jin Wuming. Both Li Xunhuan and Shangguan Jinhong felt that if Ah Fei was present, Li Xunhuan would stand a chance; with Ah Fei absent, and Jin Wuming present, he stood none."Is something wrong with this place?" ShangGuan JinHong said.
"Originally, no. But now, yes." Li XunHuan said.
"What is wrong with it?" ShangGuan JinHong said.
"It's getting too crowded here." Li XunHuan said.
"Is he making you feel uncomfortable?" ShangGuan JinHong said.
"Yes." Li XunHuan said.
He didn't want to hide it. Even if Jing WuMing didn't attack, he was still a threat to him.
Because his sword could come out at anytime. There was no one in this world who could withstand a combined attack from the two of them.
2) Terrain. The place of the battle was specifically chosen by Shangguan Jinhong; it was his own home! No one in the entire world was more familiar with that place than he was, and it was specifically stated that terrain plays a critical role in a battle:Li XunHuan let out a sigh, he suddenly thought of Ah Fei. If only Ah Fei were here ...
ShangGuan JinHong read his mind perfectly and said, "If Ah Fei were present then you would have a chance, its unfortunate though ... that he is such a disappointment."
So yes, Shangguan Jinhong was definitely in a far superior position to Li Xunhuan in their duel. He had the advantage of Jin Wuming, and he had the advantage of terrain."In a duel between experts, not only must you take into account the strengths and weaknesses of a peron's martial arts, but you also consider the weather, surroundings, and people. Since ShangGuan JinHong chose this place for the duel, he must have his reasons." Mr. Sun replied.
"What reason is that?" Sun XiaoHong said.
"He must be very familiar with the terrain here, he might have even come here earlier to set up traps." Mr. Sun said.
"So Li XunHuan must come here beforehand to look around and inspect whether ShangGuan JinHong had set up traps and where they could be." SUn XiaoHong said.
"Exactly. The generals of old would always patrol the site before an important battle. No matter what kind of battle, as long as one first observes the surroundings, one will ensure an advantage." Mr. Sun said.
"But why is he strolling back and forth at that spot?" Sun XiaoHong asked.
"That back and forth stroll has its purpose as well." Mr. Sun said with a laugh.
"Huh?" Sun XiaoHong said.
"He wants to walk over every inch of dirt here and see how the surface is. He wants to know whether it's soft, whether it's parched, or whether it's damp." Mr. Sun replied.
"And what use is that?" Sun XiaoHong said.
"Because the dirt can be different at different spots, it can affect one's lightness. If when using seven-tenths of your strength you are able to leap seven meters on wet dirt, on solid dirt you can leap ten meters." Mr. Sun said.
If it weren't for that, I honestly believe that Li Xunhuan and Shangguan Jinhong actually were equals.
1) Although Shangguan Jinhong was ranked ahead of Li Xunhuan in the 'Book of Weapons' by Bai Xiaosheng, it was made clear that even in Book 1, upon his death, Bai Xiaosheng realized that he had underestimated the speed of Li Xunhuan's dagger.
2) The verbal and philosophical exchanges between the two indicate a level of parity:Bai Xiao Sheng's eyes filled with hate, staring at Li Xun Huan. His whole body showed immense disbelief and shock.
Even in death, he could not believe that Li Xun Huan's dagger is in his throat.
His mouth is still trying to say something, except he couldn't say it. But everyone can see that he was trying to say, "I'm wrong... I'm wrong..."
That's right. Bai Xiao Sheng knows all, sees all, but was wrong about one thing.
Little Li's Flying Dagger is much more faster then even he had ever imagined!
3) Old Man Sun believed that 'no one can answer' the question of who was 'currently winning' the battle between the two.
ShangGuan JinHong's hands finally emerged from his sleeves.
His hands were empty.
"Where are your rings?" Li XunHuan asked him.
"They are here." ShangGuan JinHong answered.
"Where?" Li XunHuan asked again.
"In my heart." ShangGuan JinHong replied.
"Your heart?" Li XunHuan said.
"The rings aren't in my hands, the rings are in my heart!" ShangGuan JinHong said.
Li XunHuan's eyes suddenly shrunk.
ShangGuan JinHong's rings, they could not be seen!
Because they cannot be seen, they could be anywhere. They could be right before your eyes, right in front of your throat, or right next to your soul.
Even when your entire being has been destroyed, you still wouldn't know from where they came!
"The rings aren't in hand, but the rings are in the heart."
This is the pinnacle or martial arts!
This was the level of gods and immortals.
But no one understood. That is, no one except Li XunHuan.
[...]
"Seven years ago, my hands had finally become formless." ShangGuan JinHong said.
"I'm in awe." Li XunHuan said.
"You understand?" ShangGuan JinHong asked.
"Subtle and exquisite, there are no rings, there is no self. No trace left to be found, and no barrier left that is unbreakable." Li XunHuan said.
"Wonderful! You really do understand!" ShangGuan JinHong exclaimed.
"To comprehend is to not comprehend, to not understand is to understand.
The two of them were like two Zen masters engaged in a duel of rhetoric.
Except for the two of them, no one else understood a word.
They did not understand, that's why it was so terrifying ...
[...]
"Very well, make your move!" ShangGuan JinHong said.
"My moves are already here!" Li XunHuan said.
ShangGuan JinHong looked a little confused and asked, "Where?"
"In the heart. The moves are not in this dagger, the moves are in my heart."
ShangGuan JinHong's eyes suddenly shrunk as well!
Those who couldn't see where ShangGuan JinHong's rings resided, couldn't see where Li XuHuan's moves were either.
But when the rings arrive, the moves would emerge!
4) Although the following quote was about their personalities, it is an exemplar of the 'opposite parity' which Gulong put into their characters. This was shortly after the duel they made, which was interrupted by Old Man Sun:
"Although their auras and actions are completely different, the two of them ... the two of them both aren't human. The things that they do, humans are just not capable of doing."
"Yes, there is some sense in your words, the two of them really are inhuman, except ... one of them is a saint, while the other one is a demon."
The line between kindness and evil is thin, the difference between a saint and a demon lies in between.
"Right, if Li XunHuan was not Li XunHuan, then he could very well be ShangGuan JinHong."