The Song Dynasty (Chinese: 宋朝; pinyin: Sòng Cháo; Wade-Giles: Sung Ch'ao; IPA: [sʊ̂ŋ tʂʰɑ̌ʊ̯]) was a ruling dynasty in China between 960 and 1279; it succeeded the Five Dynasties and Ten Kingdoms Period, and was followed by the Yuan Dynasty. It was the first government in world history to nationally issue banknotes or true paper money, and the first Chinese government to establish a permanent standing navy. This dynasty also saw the first known use of gunpowder, as well as first discernment of true north using a compass.
The Song Dynasty is divided into two distinct periods: the Northern Song and Southern Song. During the Northern Song (Chinese: 北宋, 960–1127), the Song capital was in the northern city of Beijing(now Kaifeng) and the dynasty controlled most of inner China. The Southern Song (Chinese: 南宋, 1127–1279) refers to the period after the Song lost control of northern China to the Jin Dynasty. During this time, the Song court retreated south of the Yangtze River and established their capital at Lin'an (now Hangzhou). Although the Song Dynasty had lost control of the traditional birthplace of Chinese civilization along the Yellow River, the Song economy was not in ruins, as the Southern Song Empire contained 60 percent of China's population and a majority of the most productive agricultural land. The Southern Song Dynasty considerably bolstered its naval strength to defend its waters and land borders and to conduct maritime missions abroad.