Shortly after the founding of the People's Republic of China, Xiao was invited to establish the leading organs of People's Liberation Army Navy.
On January 12, 1950, Xiao was appointed as Commander of the Chinese People's Liberation Army Navy and also served as the president and political commissar of the Dalian Naval Academy.
Meanwhile, he was involved in the expansion of the Naval Aviation School and Naval Artillery School.
In August 1950, Xiao hosted the navy meeting to determine specific guidelines for the early construction of the People's Liberation Army Navy: "Firstly, to build a modern offensive and defensive force which is offshore, light, agile, combat power.
Secondly, to carry out the attacks-destroyed on the sea theory."
At the same time, Xiao set about establishing the China North Sea Fleet, East Sea Fleet and South Sea Fleet, which are initially the Chinese maritime defense systems.

In April 1952, a delegation led by Xiao visited the Soviet Republic for solving the problem of naval weapons and equipment.
In 1954, Xiao advocated a strategy of three develop steps for the Chinese naval weapons and equipment as follows: gathering support for whole set foreign materials, equipment and technology; digesting and absorbing foreign technology with imitation and gradually achieving the self-sufficiency; designing by ourselves, using domestic materials and equipment to make the Navy weapons and equipment.
In September, Xiao was appointed to Vice-Minister of Defense of People's Republic of China.

In January 1955, it is the first time that Xiao led naval forces, working with ground forces and air forces together in Joint operations near the coastal islands of the Nationalist troops, they occupied Yijiangshan island; in February, they captured Dachen Island, Yushan Islands, Pishan Island; in March he participated in the reception of the soviet military equipment in Lüshunkou.
In September 1955, Xiao gained the military award of the ten senior commanders of the PLA, Prime August-1st military Medal (八一勋章), Prime Medal of Freedom and independence (一级独立自由勋章), Prime Liberal Medal (一级解放勋章) at the same time.
He also served as the first committee member of National Defense Commission, and was reappointed consecutively.
In June 1956, he attended the first Congress of Party Representatives and proposed the theory that "our work base on the existing power and focus on the air force, the submarine and the torpedo boat."
In September 1956, he was elected as a member of the Central Committee.
In September 1958, Xiao led the soldiers of Navy, Air Force and Ground Force, to bombard Kinmen Island (Quemoy).

From 1962, he was ostracized by Lin Biao.
In March 1965, Xiao Jinguang still worked as a member of the third the national people's Congress.
In August 6, the People's Liberation Army Navy engaged with KMT, spitchering KMT's gunboats Zhangjiang and Jianmen.
In January 1967 Xiao was criticized by error, and was deprived of the presiding work of Navy.
In 1971, after the September 18 incident, Xiao returned to his work in the navy and took charge of producing nuclear-powered submarines (including the nuclear submarine) and missile flooding aircraft.
However, at that moment, he was under great duress and violence due to Cultural Revolution and Gang of Four.
One of the lies ever perpetrated on him was that he was the man who had been on pirate ship (上了贼船).
But Mao Zedong declared that: "Xiao is a lifetime naval commander, when he is alive, no one can substitute."

In August 1973, he was elected as a member of The 10th Central Congress.
In 1975, he worked as a member of The Third National People's Congress.
In October 1976, Xiao met with Marshal Ye Jianying, and suggested to clear the Gang of Four (四人帮).
In August 1977, he was elected as a member of The 11th Central Congress.
On May 5, 1979, the CPC Central Committee rehabilitated Xiao’s unjust verdict, and in the following month he was elected as the vice chairman of the fifth Standing Committee of National People's Congress.
In January 1980, Xiao Jinguang retired from the Navy leadership pos
Shortly after the founding of the People's Republic of China, Xiao was invited to establish the leading organs of People's Liberation Army Navy. On January 12, 1950, Xiao was appointed as Commander of the Chinese People's Liberation Army Navy and also served as the president and political commissar of the Dalian Naval Academy. Meanwhile, he was involved in the expansion of the Naval Aviation School and Naval Artillery School. In August 1950, Xiao hosted the navy meeting to determine specific guidelines for the early construction of the People's Liberation Army Navy: "Firstly, to build a modern offensive and defensive force which is offshore, light, agile, combat power. Secondly, to carry out the attacks-destroyed on the sea theory." At the same time, Xiao set about establishing the China North Sea Fleet, East Sea Fleet and South Sea Fleet, which are initially the Chinese maritime defense systems.
In April 1952, a delegation led by Xiao visited the Soviet Republic for solving the problem of naval weapons and equipment. In 1954, Xiao advocated a strategy of three develop steps for the Chinese naval weapons and equipment as follows: gathering support for whole set foreign materials, equipment and technology; digesting and absorbing foreign technology with imitation and gradually achieving the self-sufficiency; designing by ourselves, using domestic materials and equipment to make the Navy weapons and equipment. In September, Xiao was appointed to Vice-Minister of Defense of People's Republic of China.
In January 1955, it is the first time that Xiao led naval forces, working with ground forces and air forces together in Joint operations near the coastal islands of the Nationalist troops, they occupied Yijiangshan island; in February, they captured Dachen Island, Yushan Islands, Pishan Island; in March he participated in the reception of the soviet military equipment in Lüshunkou. In September 1955, Xiao gained the military award of the ten senior commanders of the PLA, Prime August-1st military Medal (八一勋章), Prime Medal of Freedom and independence (一级独立自由勋章), Prime Liberal Medal (一级解放勋章) at the same time. He also served as the first committee member of National Defense Commission, and was reappointed consecutively. In June 1956, he attended the first Congress of Party Representatives and proposed the theory that "our work base on the existing power and focus on the air force, the submarine and the torpedo boat." In September 1956, he was elected as a member of the Central Committee. In September 1958, Xiao led the soldiers of Navy, Air Force and Ground Force, to bombard Kinmen Island (Quemoy).
From 1962, he was ostracized by Lin Biao. In March 1965, Xiao Jinguang still worked as a member of the third the national people's Congress. In August 6, the People's Liberation Army Navy engaged with KMT, spitchering KMT's gunboats Zhangjiang and Jianmen. In January 1967 Xiao was criticized by error, and was deprived of the presiding work of Navy. In 1971, after the September 18 incident, Xiao returned to his work in the navy and took charge of producing nuclear-powered submarines (including the nuclear submarine) and missile flooding aircraft. However, at that moment, he was under great duress and violence due to Cultural Revolution and Gang of Four. One of the lies ever perpetrated on him was that he was the man who had been on pirate ship (上了贼船). But Mao Zedong declared that: "Xiao is a lifetime naval commander, when he is alive, no one can substitute."
In August 1973, he was elected as a member of The 10th Central Congress. In 1975, he worked as a member of The Third National People's Congress. In October 1976, Xiao met with Marshal Ye Jianying, and suggested to clear the Gang of Four (四人帮). In August 1977, he was elected as a member of The 11th Central Congress. On May 5, 1979, the CPC Central Committee rehabilitated Xiao’s unjust verdict, and in the following month he was elected as the vice chairman of the fifth Standing Committee of National People's Congress. In January 1980, Xiao Jinguang retired from the Navy leadership pos
Xiao Jinguang