After 1957, the ACYF began to suffer setbacks. The departments were greatly streamlined, the scope of work was cut down, and people to be served was limited to a small circle. When the "Cultural Revolution" started, the ACYF ceased to work entirely. Despite all those difficulties, members and workers of the ACYF continued to exert their effort in uniting with young people of all circles and all nationalities, maintaining and consolidating the youth united front.
　　On April 9, 1958, the Third All-China Youth Conference was convened in Beijing. Six hundred representatives attended the Conference, and Liu Xiyuan was elected President of the ACYF.
　　In the early 1960s, to respond actively to the call of the State, the ACYF guided young people of all walks of life to take part in the campaign of "Increasing Production and Practicing Economy", by which, it helped strengthening relationship between young people working in the sector of industry and commerce and that of other circles; helped enhancing ideological understanding of young people in the sector of industry and commerce and promoted the development of joint State-private enterprises. The ACYF also intensified its work among returned overseas Chinese youth and young ethnic peoples.
　　From April 16 to 27, 1962, the First Session of the Fourth National Committee of the ACYF was held in Beijing. This Conference elected the Fourth National Committee of the ACYF with Liu Xiyuan elected its President.
　　In order to make young people of all nationalities to better and fully understand the situation China was facing, strengthen their confidence in overcoming difficulties, arouse young people of all walks of life to make their contribution to the effort in restoring China's national economy, youth federations at all levels, after the First Session of the Fourth National Committee of the ACYF, extensively publicized the principles upheld by the Session. In more than one year after that meeting, youth federations of 22 provinces, autonomous regions and centrally administered municipalities and 125 cities convened respective conferences, and, as a result, work among young people was in general much improved.
　　The ACYF and all local youth federations carried out an educational campaign in respect of patriotism, internationalism and socialism among young people of all nationalities and all circles. They also took pains to carry out work among young people in the sector of industry and commerce and the religious circle so as to expand the work scope and unite with more young people. Besides, they intensified work among young educated people with past experiences as basis.