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The bilateral relations between Mongolia and the People's Republic of China have long been determined by the relations between China and the Soviet Union, Mongolia's other neighbour and main ally until 1990. With the rapprochement between the USSR and China in the late 1980s, Sino-Mongolian relations also began to improve. Since the 1990s, China has become Mongolia's biggest trading partner, and a number of Chinese businesses are operating in Mongolia.
Throughout history, Mongolia and China have had complicated relations. The Great Wall was constructed to ward off the northern nomads attacks, from the Huns during the Qin Dynasty, the Turks during the Tang Dynasty, and later, the Mongolians and Central Asians.
In 1279, Mongols under Kublai Khan, grandson of Genghis Khan, conquered all of China and established the Yuan Dynasty. In 1368, the Chinese under the Ming Dynasty successfully expelled the Mongols from China and in 1388, sacked the Mongol capital at Karakorum.
During the Ming Dynasty, the Great Wall was strengthened and the period was characterized by repeated Mongol raids into China and Chinese raids into Mongolia. During the Qing conquest of the Ming, the Mongol leader Ligdan Khan allied with the Ming against the Qing until Ligdan was defeated by Qing forces and Inner Mongolia was conquered by the Qing. In 1644, the Ming Dynasty was overthrown by peasant rebels under Li Zicheng, who established the short lived Shun Dynasty which would soon be replaced by the Qing Dynasty. During the Qing Dynasty, Mongolia was incorporated into the empire.