Upon his return to China, Liu entered into the film world, and soon became a major figure in China's independent film scene. Beginning his career as a screenwriter collaborating with in his films ''Spicy Love Soup'', and '''', and Shi Runjiu in '''', Liu eventually moved on to founding his own independent production company, Electric Orange Entertainment, which helped finance and produce Zhang Yibai's debut film ''Spring Subway''.
In 2004, Liu released his directorial debut, the comedy-drama ''Green Hat''. It was followed by the release of ''Ocean Flame'', produced by Simon Yam Tat-wah, in 2008.
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