Sources indicate that the studio is keeping the plot under tight wraps, although it seems that the flick will open in Ancient China before jumping ahead to a post-WWII setting. Hm. The screenplay comes from "Smallville" creators Alfred Gough and Miles Millar, and (has been reported numerous times) Rob Cohen is taking over the directorial reins from producer Stephen Sommers.
Apparently at least one scene in the flick will deal with the legendary "terra cotta warriors," which might be pretty nifty to watch. Regarding Mr. Li, it looks like he’s still "in negotiations" with the studio, but it’s probably a done deal by this point. Raise your hand if this sequel sounds like a good idea.
Source: The Hollywood Reporter