(9071125) Dynasty formed by the nomadic Khitan tribes in much of present-day Manchuria, Mongolia, and the northeastern corner of China proper.
The Chinese portion of the empire was governed on the Tang pattern, while the northern part was set up on a tribal basis. After the establishment of the Song dynasty (9601279), the Liao carried out a border war for control of northern China. Eventually the Song agreed to pay the Liao an annual tribute. The Juchen , former subjects of the Liao, destroyed the dynasty in 1125 but adopted most of its governmental system. The name "Cathay" for China derives from Khitay, another name for the Khitan.