Han dynasty
To the north of China proper, the nomadic Xiongnu chieftain Modu Chanyu (r. 209–174 BC) conquered various tribes inhabiting the eastern portion of the Eurasian Steppe. By the end of his reign, he controlled Manchuria, Mongolia, and the Tarim Basin, subjugating over twenty states east of Samarkand. Emperor Gaozu was troubled about the abundant Han-manufactured iron weapons traded to the Xiongnu along the northern borders, and he established a trade embargo against the group. In retaliation, the Xiongnu invaded what is now Shanxi province, where they defeated the Han forces at Baideng in 200 BC. After negotiations, the "heqin" agreement in 198 BC nominally held the leaders of the Xiongnu and the Han as equal partners in a royal marriage alliance, but the Han were forced to send large amounts of tribute items such as silk clothes, food, and wine to the Xiongnu.
History of Mongolia
Although the Xiongnu finally had been split into two parts in AD 48, the Xianbei (or Hsien-pei in Wade–Giles) had moved (apparently from the east) into the region vacated by the Xiongnu. The Xianbei were the northern branch of the Donghu (or Tung Hu, the Eastern Hu), a proto-Mongol group mentioned in Chinese histories as existing as early as the 4th century BC. The language of the Donghu is believed to be proto-Mongolic to modern scholars. The Donghu were among the first peoples conquered by the Xiongnu. Once the Xiongnu state weakened, however, the Donghu rebelled. By the 1st century AD, two major subdivisions of the Donghu had developed: the proto-Mongolic Xianbei in the north and the Wuhuan in the south.