In 1937 the Chinese government picked up intelligence that the Japanese planned a puppet Hui Muslim country around Suiyuan and Ningxia, and had sent agents to the region.

The following year in 1940, the Japanese were defeated militarily by the Kuomintang Muslim General Ma Hongbin, who caused the plan to collapse.

Ma Hongbin's Hui Muslim troops launched further attacks against Japan in the Battle of West Suiyuan.

[6][7] In Suiyuan 300 Mongol collaborators serving the Japanese were fought off by a single Muslim who held the rank of Major at the Battle of Wulan Obo in 1939 April.

Ma Hongbin commanded the 81st corps and sustained heavy casualties, but eventually repulsed the Japanese and defeated them.