Liu became the Party Secretary of Fujian Province in 1932. He accompanied the Long March in 1934 at least as far as the crucial Zunyi Conference, but was then sent to the so-called "White Areas" (areas controlled by the Kuomintang) to reorganize underground activities in northern China, centered around Beijing and Tianjin. He became Party Secretary in North China in 1936, leading the anti-Japanese movements in that area with the assistance of Peng Zhen, An Ziwen, Bo Yibo, Ke Qingshi, Liu Lantao, and Yao Yilin. Liu ran the Central Plains Bureau in 1939; and, in 1941, the Central China Bureau. Some Japanese sources have alleged that the activities of his organization sparked the Marco Polo Bridge Incident in July 1937, which gave Japan the excuse to launch the Second Sino-Japanese War.