Li's 2007 Hollywood film, War, was released in August of that year, and re-teamed him with actor Jason Statham, who previously starred with him in The One, and action choreographer Corey Yuen. War raked in a disappointing US$23 million at the box office, becoming one of Li's lowest grossers in America; however, it was a hit on video, accumulating nearly US$52 million in rental revenue, more than doubling its box office take. With the exception of Romeo Must Die and the worldwide release of Hero, most of Li's American/Western films have been only modest hits like Kiss of the Dragon, The One, Unleashed, Cradle 2 the Grave, and the worldwide release of Fearless.
In late 2007, Li returned again to China to participate in the China/Hong Kong co-production of the period war film The Warlords with Andy Lau and Takeshi Kaneshiro. This film, with its focus on dramatics rather than martial arts, netted Li the Hong Kong Film Award for Best Actor.
Li and fellow martial arts veteran Jackie Chan finally appeared together onscreen for the first time in The Forbidden Kingdom, which began filming in May 2007 and was released to critical and commercial success on 18 April 2008. The film was based on the legend of the Monkey King from the Chinese folk novel Journey to the West. Li also starred as the lead villain in the fantasy action film The Mummy: Tomb of the Dragon Emperor with actors Brendan Fraser, Isabella Leong and Michelle Yeoh.
In April 2007, touched by his life-shaking experience in the Maldives when he was close to dying during the 2004 tsunami, Li formed his own non-profit foundation called The One Foundation. The One Foundation supports international disaster relief efforts in conjunction with the Red Cross as well as other efforts, including mental health awareness and suicide prevention. Since the starting of the foundation, Li has been involved with recovery efforts in seven disasters, including the 2008 Sichuan earthquake and Typhoon Morakot in Taiwan. In the 2013 Lushan earthquake in Ya'an, Sichuan, Li and other members of the entertainment sector were the first to appeal for donations of money, goods and materials to help the victims of the disaster. Wu Jing was a One Foundation volunteer and helped in the effort.