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After his death the empire was divided into several powerful Mongol states, but these broke apart in the 14th century. The Mongols eventually retired to their original steppe homelands and in the late 17th century came under Chinese rule. Mongolia declared its independence from the Manchu-led Qing Empire in and achieved limited autonomy until , when it again came under Chinese control.
The modern country of Mongolia, represents only part of the Mongols' historical homeland; today, more ethnic Mongolians live in the Inner Mongolia Autonomous Region in the People's Republic of China than in Mongolia.
Foreign direct investment in Mongolia's extractive industries — which are based on extensive deposits of copper, gold, coal, molybdenum, fluorspar, uranium, tin, and tungsten - has transformed Mongolia's landlocked economy from its traditional dependence on herding and agriculture. Remittances from Mongolians working abroad, particularly in South Korea, are significant.
Soviet assistance, at its height one-third of GDP, disappeared almost overnight in and at the time of the dismantlement of the USSR. The following decade saw Mongolia endure both deep recession, because of political inaction, and natural disasters, as well as strong economic growth, because of market reforms and extensive privatization of the formerly state-run economy.
The country opened a fledgling stock exchange in Mongolia joined the WTO in and seeks to expand its participation in regional economic and trade regimes. By late , Mongolia was hit by the global financial crisis and Mongolia's real economy contracted 1. In October , Mongolia passed long-awaited legislation on an investment agreement to develop the Oyu Tolgoi OT mine, among the world's largest untapped copper-gold deposits.