Disney announced the news yesterday on their blog and the Chinese equivalent of Twitter, Sina Weibo.
Liu is known to many Filipinos as "DaDa" for her role in the 2006 Chinese series "The Return of the Condor Heroes".
The 1994 animated Mulan made US$304.3 million worldwide and received Golden Globe and Oscar nominations.
Disney has found its Mulan. It joins a string of live-action adaptations of Disney hits, including Beauty And The Beast this year and The Jungle Book last year.
More than 100,000 people signed the petition, which protested against "whitewashing" in Hollywood after several white actors were cast as characters who were originally conceived as Asian or placed as the heroes in Asian films.
Casting directors were looking for a young ethnic Chinese woman who had martial arts skills, star quality and could speak English, the report said. You know, when Scarlett Johansson played a Japanese character in Ghost in the Shell and Matt Damon's lead role in Chinese historical movie The Great Wall. She's fluent in English and even lived in Queens, New York City, as a kid, according to the Hollywood Reporter.
The 30-year-old actress is no stranger to the English language, having lived in NY for part of her childhood, and she also acted in the 2008's The Forbidden Kingdom, alongside Jackie Chan and Jet Li, and 2014's Outcast, opposite Nicolas Cage and Hayden Christensen. She has also worked with Emile Hirsch in The Chinese Widow, which opened in the Shanghai International Film Festival in June this year.