Paper Sack Producer Mongolia Mongolia is a landlocked country in East Asia. Its area is roughly equivalent with the historical territory of Outer Mongolia, and that term is sometimes used to refer to the current state. It is sandwiched between Russia to the north and China to the south, where it neighbours the Inner Mongolia Autonomous Region. Mongolia does not share a border with Kazakhstan, although only 37 kilometres (23 mi) separates them. At 1,564,116 square kilometres (603,909 sq mi), Mongolia is the 19th largest and the most sparsely populated sovereign state in the world, with a population of around 3 million people. It is also the world's second-largest landlocked country behind Kazakhstan and the largest landlocked country that does not border a closed sea. The country contains very little arable land, as much of its area is covered by steppes, with mountains to the north and west and the Gobi Desert to the south. Approximately 30% of the population are nomadic or semi-nomadic; horse culture and riding remain integral. The majority of the state's citizens are of Mongol ethnicity, although Kazakhs, Tuvans, and other minorities also live in the country, especially in the west. Mongolia declared itself independent from the Qing dynasty in 1911 and became a republic in 1924. Following the Soviet Union's occupation, Mongolia was declared a People's Republic in 1924 and witnessed a violent socialist revolution in 1932. A period of White Terror followed, and the purges resulted in the execution of thousands of people. Mongolians fought alongside the Soviet Union during World War II, but since 1947 have been increasingly aligning with the People's Republic of China. The economy of Mongolia has traditionally been based on herding and agriculture, although development of extensive mineral deposits of copper, coal, molybdenum, tin, tungsten, and gold have emerged as a driver of industrial production. Besides mining (about 28% of GDP) and agriculture (about 10% of GDP), economic activity includes construction, manufacturing, tourism, and services. Mining accounts for more than 22% of Mongolia's export earnings and over one-fifth of GDP. Other minerals extracted include fluorspar, uranium, and rare earth metals. The country's terrain is one of mountains, steppes, and desert. Roughly 85% of the population lives in rural areas. The capital and largest city is Ulaanbaatar, located in the north-central part of the country.