Xu Xiangqian
Liu, Deng and Deputy Commander Xu Xiangqian led their troops to Shanxi, and carried out bushfighting around Taihang Mountain. After rounds of successful battles against the Japanese army, they set up the Jin–Ji–Yu Base Area () which consisted of parts of Shanxi, Hebei and Henan. In 1940, Liu led his division in the Hundred Regiments Campaign, a major campaign led by Peng to breach the blockage on CPC base areas enforced by Japanese forces under the command of General Okamura Yasuji. At the same time, Liu integrated regular forces with militia, using frontal attack and bushfighting to frustrate the Japanese army's suppression and clean-out efforts. The Japanese were so irritated that they sent agents to assassinate Liu. Although their mission was a failure, they did succeed in murdering Liu's first daughter when she was kept in kindergarten. The Japanese thought that this revenge might distract Liu, but they underestimated Liu's willpower. His heightened loathing for the Japanese gave him more courage under fire and more inspiration in command.