After the failed Second Encirclement Campaign against Shaanxi–Gansu Soviet in July, 1935, Chiang Kai-shek once again immediately mobilized more than 100,000 troops of warlords of Northeast China, Shaanxi, Shanxi, Suiyuan, Ningxia and Gansu to launch the Third Encirclement Campaign against Shaanxi–Gansu Soviet aimed to eradicate the local communists.
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After suffering a continuous series of defeat, the nationalists were forced to withdraw and called off their First Encirclement Campaign against Shaanxi-Gansu Soviet, and the communists declared their victory.