On June 4, 1933 Khoja Niyaz concluded Peace Agreement with Sheng Shicai in Jimsar under mediation of newly appointed Soviet Consul-General in Urumchi Garegin Apressof, close associate of Joseph Stalin, and agreed to turn his Uyghur forces against general Ma Zhongying in exchange for granting control over Southern Xinjiang (Kashgaria or Tarim Basin), which already was lost by Chinese and where bloody struggle for power between different rebel forces was being developed, also over Turpan Basin and Kumul Region, which currently were occupied by Ma Zhongying's forces.

Yulbars Khan not followed Khoja Niyaz in this decision and remained to be ally of Ma Zhongying, who appointed him to be the Chief of Procurement Department of Kuomintang (KMT) 36th Division.

In summer 1934, after retreating of Ma to the Southern Xinjiang and his following interning on Soviet territory on July 7, 1934, Yulbars Khan managed to conclude peace agreement with Sheng Shicai and was left as commander of Uyghur regiment in Kumul and also given high post of Commissioner for Reconstruction Affairs in Xinjiang Provincial Government.

He led Chinese Muslim cavalry and White Russians against People's Liberation Army (PLA) forces taking over Xinjiang in 1949.

[10][11] Yulbars Khan was declared a traitor by Uyghur figures in the East Turkestan Independence Movement like Muhammad Amin Bughra and Isa Yusuf Alptekin for siding with Chiang Kai-shek and the Kuomintang, who continued to claim Xinjiang as a part of the Republic of China.