According to the politician and analyst Bat-Erdene Batbayar, Dambadorj established diplomatic contacts with Japan and China, whereas his colleague Navaandorjiin Jadambaa kept in touch with the USA, Germany and Great Britain.

They hoped to establish Mongolia as a neutral and diplomatically recognized state, but came under attack within their own party ranks because of their perceived rapprochement with the capitalist powers.

[3] In 1924-1925 Dambadorj undertook a mission to Europe ostensibly to promote the activities of the Institute of Science and Letters but in reality to establish contacts with French and German governments.

The rise of Josef Stalin in the Soviet Union ushered in a "Leftist Period" in the Mongolian People's Republic wherein the party pushed more rapid collectivization, land expropriation, and persecution of the Buddhist Clergy.

"Rightwingers" such as Dambadorj, Ajvaagiin Danzan, Tseveen Jamsrano, and Navaandorjiin Jadambaa, all of whom had played a role in what was later called "the Period of Rightist Opportunity", were expelled from the party.