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Lao Pie-fang, known as a Hun-hutze (red beard), he was a guerrilla leader fighting in western Liaoning against Japanese occupation. He led several thousand followers to attack Japanese garrisons the southern portion of the South Manchurian Railroad mainline in early 1932, during the pacification of Manchukuo. The Japanese garrison of Newchwangchen was encircled and attacked while other troops under his orders attacked in the Haicheng area. Japanese reinforcements quickly dispatched from Mukden forced Lao's retirement, but Lao Pie-fang emerged as an Anti-Japanese Volunteer Army general and was acclaimed as commander by the local bands of the brotherhoods and citizen militias.

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