Liu enrolled in the fourth cadet class in 1925. Some of his well-known classmates included Lin Biao, Hu Lien, and Zhang Lingfu. After graduation, he participated in the Northern Expedition and Central Plains War and was promoted to the commander of the 5th Regiment, the 2nd Division when the Sino-Japan War began.
In fact, Liu had already experienced fighting with Imperial Japanese Army in 1933, during the Defense of the Great Wall, in which he suffered a minor wound. After the war against Japan broke out in 1937, he distinguished himself in the Battle of Taierzhuang, Battle of Wuhan. In 1939, he was promoted to the brigade commander and also the garrison commander of Changsha and fought against the Japanese Army in the First Battle of Changsha. In 1941, his commander Guan Linzheng promoted him to the post of the commander of the 2nd Division, the 52nd Corps, while the corps stationed in Yunan. In 1945, he led the 2nd Division to Vietnam to accept the surrender of Japanese Army there. When the Chinese communist forces invaded Manchuria, Liu's 52nd Corps were sent to Manchuria to fight with the communist forces under his former classmate, Lin Biao.
In September 1945, the Soviet Red Army of USSR occupied Shenyang. In March 1946, the Red Army withdrew from Shenyang and the KMT took over the city. Soon afterward, the PLA started large offensive operations against Shenyang. Liu was commander of KMT troops, and CPC's commander was Lin Biao, Liu's former classmate who had now become his enemy. Both men were fighting for the control of the city. Liu defeated Lin Biao's troops and won the battle, recovering Shenyang successfully at last, and after this victory Liu was promoted to lieutenant general. This battle was one of the early engagements in Manchuria where KMT had initial success.
Refusal to obey Chiang's order
When the Liaoshen Campaign broke out in September 1948, Liu's 52nd Corps was part of the 9th army. The 9th army was tasked personally by Chiang Kai-shek to relieve the city ofJinzhou, and both 9th army commander General Liao Yaoxiang and Liu knew that the city was a lost cause, so they suggested to President Chiang Kai-shek if the relief effort was not successful that the 9th army should withdraw to Yinkou via sea. Chiang and nationalist overall commander in Manchuria, General Wei Lihuang agreed their proposal. But the 9th army failed both objectives and on 26 October, the Communist Manchurian Field Army captured General Liao and took 100,000 nationalist soldiers as their prisoners.
Yingkou retreat
When CPC won the Liaoshen Campaign, KMT still had 50,000 troops near Yingkou port when CPC began the final siege of the city. Liu's 52nd Army fought in rear guard actions to help those 50,000 men retreat to friendly territories such as Shanghai by sea, On 31 October 1948 Liu boarded the last KMT naval ship to leave port when communist rocket and mortar fires fell on the beach. At this point he became extremely emotional and cried because he knew that KMT had lost the whole of Manchuria forever.
Liu succeed his classmate Hu Lien as commander of Kinmen defense area and was sent to United States to study by Chiang Kai-shek. He was one of the few Chinese generals who graduated from an American military academy besides General Sun Li-jen. He was appointed as garrison commander of Taiwan and head of nationalist security police. Liu retired from the army in 1970 and died in 1981.
Popular culture
In Taiwan, there are two war films about Liu Yuzhang and his units:
7-Man Army
Da Mo Tian Lin : the background of this film was Liaoshen Campaign and Liu‘s troop had defeated Lin Biao in the hill of Da Mo Tian Lin.