Don't use csub against lao jaja
but if you're loyal to your character, just bait his moves. Most kung laos want to get close by diving kick their way, so don't get too close or too far, so you can be ready to block his dive kicks. From there, hp xxground ice and full combo. I've heard kung lao is easy to relaunch but I never practiced relaunchers in this game. And as for his teleport, you just have to download the player's style and learn when they are going for it. Everyone has a pattern. You can uppercut their tlpt or maybe even a slide. Always blockjab his wake up spins attempts so he starts respecting you. That's when you go for the classic jab xxground ice, mix up with normal freeze if they jump.
Oh, and don't let them throw a single hat in mid distance without punishing!
Hope that helps, man