Yuan was born on 13 January 1916 in Nanzhao County, Henan, Republic of China.[1][2] He entered Peking University in 1934 to study mathematics, later transferring to geology.[2] In 1935, he participated in the December 9th student protests against Japanese aggression in North China. He joined the Communist Youth League in April 1936, and the Communist Party of China (CPC) in September.[2][3]