Historically, the
Gobi served as a barrier to large-scale Han settlement in what was, before 1921, called
Outer Mongolia; the unsuitability of most of the territory for
agriculture made settlement less attractive. Some Han settlements in Mongolia were founded in 1725, when farmers moved there by decree of the
Qing dynasty to cultivate food for soldiers fighting against the
Dzungars. They were established in the
Orkhon and
Tuul river basins, and in 1762, in the
Khovd region. After the fighting ended, the Qing closed off Mongolia (then under
Qing rule) to immigration and occasionally evicted Han merchants. Despite those restrictions, trade firms owned by Han people continually penetrated Mongolia, concentrating mainly in
Ikh Khüree,
Uliastai,
Khovd and
Kyakhta. Their trade practices and the lifestyle of the Mongol nobility lead to an ever-increasing indebtedness of the banners, nobles, and ordinary people, and Han-owned businesses became a target of public discontent as early as
Chingünjav's uprising in 1756. The spill-over from the
Dungan rebellions of the 1870s into Mongolia also saw a number of Han-owned businesses in Khovd and Uliastai destroyed. Many of the ethnic Han merchants lived in Mongolia only seasonally or until they had made enough money to return to
China proper. Others took Mongol wives, at least for the time of being in Mongolia. In 1906, the Qing dynasty began to implement policies aimed at Chinese colonization of Outer Mongolia along the lines of those in Inner Mongolia, but these policies never took full effect as a result of the
Xinhai Revolution and the Mongolian declaration of independence from China. The total Han population at that time, mainly consisting of traders and artisans, but also of some colonists, can be estimated to have been at some ten thousand. ==Since 1911==