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The Kitan were crippled, and it became an easy matter to attack them. But this pleasant situation did not last long. The Juchên conquered Peking, and in 1125 the Kitan empire was destroyed; but in the same year the Juchên marched against the Sung.

And the export of porcelain brought no economic injury to China, but the reverse. This Sung policy was entirely in the interest of the gentry and of the trading community which was now closely connected with them. Undoubtedly it strengthened China. The policy of nonintervention in the north was endurable even when peace with the Kitan had to be bought by the payment of an annual tribute.

The inhabitants, however, of the countries outside the wall were generally of the Tartar or Mongul race. They were of a nation or tribe called the Kitan, and were somewhat inclined to rebel against the Chinese rule.

His northern frontier remained still more insecure than the southern, for Chu Ch'üan-chung did not succeed in destroying the Turkish general Li K'o-yung; on the contrary, the latter continually widened the range of his power. The first Kitan emperor held a middle course between Chu and Li, and so was able to establish and expand his empire in peace.

The striking power of his empire, which from 937 onward was officially called the Liao empire, grew steadily, because the old tribal league of the Kitan was transformed into a centrally commanded military organization. To these dangers from abroad threatening the Later Liang state internal troubles were added.

To meet the increasing expenditure, an unexampled quantity of new money was put into circulation. The state budget increased from 22,200,000 in A.D. 1000 to 150,800,000 in 1021. The Kitan state coined a great deal of silver, and some of the tribute was paid to it in silver. The greatly increased production of silver led to its being put into circulation in China itself.

He made so much of the Kitan peril that he was permitted a larger army than usual, and he had command of 150,000 troops in the neighbourhood of Peking. Meanwhile Li Lin-fu died. He had sponsored An as a counterbalance against the western gentry. When now, within the clique of Li Lin-fu, the Yang family tried to seize power, they turned against An Lu-shan.

From 1004 onwards, 100,000 ounces of silver and 200,000 bales of silk were paid annually to the Kitan, amounting in value to about 270,000 strings of cash, each of 1,000 coins. The state budget amounted to some 20,000,000 strings of cash. In 1038 the payments amounted to 500,000 strings, but the budget was by then much larger.

A shrimp-like crustacean obtained in the irrigated sementeras is also boiled and eaten entire. A few mollusks are eaten after being cooked. One, called kitan, I have seen eaten many times; it is a snail-like animal, and after being boiled it is sucked into the mouth after the apex of the shell has been bitten or broken off.

He was able to hold out against the Kitan only because in 947 the Kitan emperor died and his son had to leave China and retreat to the north; fighting had broken out between the empress dowager, who had some Chinese support, and the young heir to the throne. The new Turkish dynasty, however, was unable to withstand the internal Chinese resistance.