Wang accompanied the government on its retreat to Chongqing during the Second Sino-Japanese War (1937–1945). During this time, he organized some right-wing groups along European fascist lines inside the KMT. Wang was originally part of the pro-war group; but, after the Japanese were successful in occupying large areas of coastal China, Wang became known for his pessimistic view on China's chances in the war against Japan. He often voiced defeatist opinions in KMT staff meetings, and continued to express his view that Western imperialism was the greater danger to China, much to the chagrin of his associates. Wang believed that China needed to reach a negotiated settlement with Japan so that Asia could resist Western Powers.