Considered a "nationalist capitalist" by the Chinese Communist Party, Liu's family was one of the few pre-1949 industrialists that received protections from the government.

His father's premature death plunged the family into a tight financial situation, and Liu feel the need to begin laying plans for a future in business at a relatively young age.

Liu learned English, studied business, and established a network with classmates at St. John's, building a foundation for a future as an internationally connected businessman.

He took a job as a comprador at the Kailuan Mining Administration, a Sino-British coal-mining company, where he rapidly rose up the corporate ladder.

[3] In the 1920s, he used this capital to establish several major enterprises spanning many industries—coal distribution, wharf operations, and the manufacture of wool textiles, cement, and matchsticks.

[3] By the mid-1930s, his total investment amounted to nearly ten million Chinese dollars, and Liu had become the single largest shareholder of his major operations.

Under the auspices of the National Match Manufacturers' Association, in July 1934 Liu established the Joint Sales Office with headquarters in Shanghai.

In 1932–1934, Liu had been the director of the state-owned China Steam Navigation Company, and in 1936–1937, he served as head of the Chinese National Joint Production and Sales Union for Matches, a state-sponsored cartel.

Thus began his time as one of China's top "nationalist capitalists," who were regarded as patriotic and encouraged to stay as citizens of the People's Republic.