In 1931, following the Japanese invasion of Manchuria, he was forced to retreat to Jinzhou, where he became commanding general of the remnants of the Fengtian forces of the Northeastern Border Defence Command. After their defeat he became a member of the Peking Branch, National Military Council, in 1933. He was commander of the Chinese 6th Army Group (2nd Northern China Army Group) during the Battle of Rehe. Following that defeat he resigned. In 1936 he was again appointed a member of the National Military Council and of the Political Board, Northeastern Field Headquarters, but was soon removed due to his links to Zhang Xueliang following the Xi'an Incident.