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Leynos said:

He's a composer so he doesn't make these decisions. He's making an opinion and people are taking this as a fact. Not like we have heard Tekken won't have Marshall Law in future games.

He says he personally has taken part in discussions at Capcom about the future of the character and says he has sources within Capcom closer to the situation than him who told him that Fei Long won't appear in future games. It's obviously not final until Capcom releases an official statement, but it does seems very likely that Fei Long is toast.