However, this opened the door to negotiations, and in exchange for weapons, money and supplies, Li defected to the Japanese side, and was appointed commander of a portion of Inner Mongolia and Rehe.

By February 1936, Li controlled a large area in Chahar province, and transferred his allegiance to Demchugdongrub and became Chief of Staff of the new Inner Mongol Army.

In 1940, Li met in Qingdao with Zhou Fohai and representatives of the Wang Jingwei Government with the aim of discussing the integration of Mengjiang into China.

However, as the situation deteriorated against the Empire of Japan towards the end of World War II, Li met in secret with Chiang Kai-shek, and defected back to the Kuomintang in exchange for being named general of the Chinese 10th Route Army.

However, at the strong request of Demchugdongrub, he returned to Inner Mongolia to assume the position of Deputy Director of Defense of the Inner Mongolian autonomous government.