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After obtaining the sixteen prefectures, the Liao founded its alternate capital in Yanjing (Beijing). Taking Beijing as its base, the Liao began its expansion to the Central Plains. In 946 it took Kaifeng, the capital of the Song Dynasty, and proceeded to attack the weak troops of the civil-oriented Song government. However, due to strong resistance in the Central Plains, the attempt was abandoned.

White agate cups

Political disputes troubled the Liao court after Emperor Taizong until the reign of Emperor Jinzong.

Upon the death of Emperor Jinzong, his son, 12-year-old Yelu Longxu succeeded him to the throne, historically known as Emperor Shengzong. Since the new emperor was too young to conduct state affairs, the court was controlled by Empress Xiao, his mother. Empress Xiao appointed Yelu Xiuge as her senior general and launched a war, defeating the Song army in 987. From then on, the warfare between the two countries never stopped.

In 1104, Liao launched another war. In the following year, having tired of the ceaseless skirmishes with the nomadic people, the Song proposed the Shanyuan Treaty with the Liao. The treaty required the Liao to ensure quiet frontiers for the Song. In return, the Song had to pay a yearly tribute to the Liao.

The conclusion of the Shanyuan Treaty was the pivotal point in Song-Liao relations. The signing of the Shanyuan Treaty was the first time the Liao forced the Song -- which considered itself the natural heir to political dominance as the Central Kingdom -- to recognize its legitimacy. After many years of fighting the Song and Liao finally decided to negotiate peace, which was achieved through the Shanyuan Treaty. The amicable relationship lasted until 1125 when the Song broke the treaty by inviting the Jin to attack the Liao.

After the treaty was signed, the nature of the relationship between these two states changed from pure political rivalry to a supposed fraternity. For the first time in Chinese history the two were the Sons of Heaven, each recognizing the other.

The Liao Dynasty, using the tributes paid by the Song, achieved rapid progress and reached a zenith both economically and politically.

 The Political System

The dynasty claimed to be the legitimate successor of the Tang. It incorporated its own tribes under respective chieftains and formed a confederation with other subdued tribes in the region, which was then transformed into a hereditary monarchy.

The Liao employed a differential ruling system where different systems were applied to people from different cultures and economies in different areas. The administration system mainly consisted of the tribal, slavery, Bohai and feudal systems for the Han people.

The Khitan people adapted the tribal system in which they maintained their traditional rites and, to a great extent, retained their own style of cooking and dress. As for Han people, particularly in the farming regions, the system from the Tang was imposed. It included the use of Tang official titles, an examination system for the appointment of civil service and a Chinese-style tax regime. The Chinese language continued to be used and the customs of the Han were also preserved.