In July 1938, the Central Committee of the Communist Party of China appointed Xiao Hua as commander and political commissar, and formed an eastward anti-Japanese advance column to arrive at the Hebei-Shandong border area to establish a base. Due to its rich natural resources and convenient transportation, this area has always been a chokepoint for military strategists. Xiao Hua used his keen political insight and unique wisdom to integrate the army's troops and recruit miscellaneous armed forces. Leading the army to raid the Japanese stronghold Denming Temple. The Kuomintang county magistrate Mou Yizhi, who had been wavering, sided with the Eighth Route Army, allowing the army to gain a firm foothold. Later, facing the Japanese and puppet troops, he once again attacked the Denming Temple by surprise and united the general Gao Shuxun. Xiao Hua eventually led his troops to capture the Denming Temple and established the famous Hebei-Shandong border anti-Japanese base area.

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