Kyakhta trade began to decline after signed the "Sino-Russian land trade treaty " in 1862, decadence of Kyakhta trade because of the unfair trade system, trade deterioration of the environment, business conditions change, the development of large industrial machines and the Western market economy. Shanxi Tea Merchant’s decadence because of their traditional commercial activities didn’t suit to large-scale socialized production and the development requirements of market economy. Violations of foreign and domestic government corruption led to the decline directly.