In the face of Chinese threats to exile the Bogd Khan, Tserendorj, Prime Minister Gonchigjalzangiin Badamdorj and the Bogd Khan agreed to sign a document “voluntarily” abdicating Mongolia's autonomy to Chinese rule.
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Following the death of the Bogd Khan, the new constitution disposed of the limited monarchy altogether and formally established the Mongolian People's Republic (MPR).
Balingiin Tserendorj, who was acting head of state in 1924, is sometimes seen as the first president, but it was not until Navaandorjiin Jadambaa was appointed Chairman of the State Great Khural in November that there was an official leader.
By the mid-1920s he had attracted the notice of Comintern agents who were looking to recruit younger, more radical, and preferably “rural” party members to challenge the authority of “old guard” revolutionaries such as Prime Minister Balingiin Tserendorj, Deputy Prime Minister Anandyn Amar, and Party Chairman Tseren-Ochiryn Dambadorj.
Lkhümbe was one of several younger, more radicalized party members from rural areas (others included Tsengeltiin Jigjidjav, Ölziin Badrakh, Zolbingiin Shijee, Bat-Ochirin Eldev-Ochir, and Peljidiin Genden) recruited by the Soviets in the late 1920s to challenge the MRPR "old guard" of Balingiin Tserendorj, Tseren-Ochiryn Dambadorj, and Anandyn Amar.
Known as one of the "rurals", he was one of several younger, more radicalized party members from rural areas (others included Jambyn Lkhümbe, Tsengeltiin Jigjidjav, Zolbingiin Shijee, Bat-Ochirin Eldev-Ochir, and Peljidiin Genden) recruited by the Soviets in the late 1920s to challenge the MRPR "old guard" of Balingiin Tserendorj, Tseren-Ochiryn Dambadorj, and Anandyn Amar.