The Sung Dynasty was founded in AD 960 and lasted until 1279. It was a dynasty with periods of brilliance and local prosperity, but the whole China was never under a firm rule during Sung Dynasty. Its capital was in the valley of Huang He, Yellow River. In 1127 the capital had to be withdrawn first to Naking and then to Hangchow in lower Yangtze valley. At this period, the Sung Dynasty slowly lost its fight with invaders. One of them was the Liao tribe, a nomad people of partly Turkish, partly Mongol characteristic.

By the beginning of 12th century they ruled all North China down to the Yellow River, with its capital at Peking. Instead of conquering Sung, however, the Liao demanded large indemnities and tributes in silk and money. In spite of their military weakness Sung Dynasty kept up a high and even luxurious culture in terms of art, literature and philosophy.

Early Sung rulers emphasized centralization of power and administration in order to prevent the rise of regional warlords. The opening of the Grand Canal linking north and south, and the expansion of trade with Inner Asia all stimulated the economy. Form the late Tang and continuing throughout the Sung, commerce flourished at all levels. Due to the concentration of people and wealth in great cities, a distinctly urban style of life evolved. Entertainment quarters emerged. Apart form that, luxury goods available in the great cities reached artistic levels rarely surpassed. Fine celadon (pottery with pale green glaze) and other forms of porcelain were produced and ceramic art became even more sophisticated during the Sung.