Genhis Khan Mausoleum. The Yuan Dynasty (1279–1368) was China's first foreign-led dynasty, in between the Chinese Song and Ming dynasties. It was established by Kublai Khan, leader of the vast Mongol Empire, and fell into internal rebellion after it lost touch with its Mongol roots. Facts About the Yuan Dynasty The Yuan empire was founded by an illiterate nomad named Genghis Khan. The Yuan Dynasty, ruled by Kublai from 1279, was the first foreign-led dynasty in ancient China. Kublai's empire was the first to use paper money as the main currency.