 He was promoted to lieutenant general on 1 August 1933, becoming the Head of the 4th Bureau of the General Staff in 1934.On 5 March 1934, Nishio was appointed Chief of Staff of the Kwantung Army in Manchukuo, where he oversaw the establishment of the reorganization of the Manchukuo Imperial Army and the pacification of Manchukuo.In March 1936 he became Vice Chief of the General Staff and Acting Head of the General Affairs Bureau, of the General Staff.