Following his defeat there, Prince Demchugdongrub and his Inner Mongolian troops retreated to northern Chahar, where he was forced to rebuild his army due to the considerable losses it had sustained. New regulations were made for the Mongolian Army by the Japanese to improve its performance and the recruitment of new soldiers had begun. However, small-scale combat still continued in the Suiyuan province until the beginning of open hostilities as a result of the Marco Polo Bridge Incident the following year. Prince De's Inner Mongolian army was rebuilt with Japanese assistance and by the time war broke out in July 1937, his force consisted of 20,000 men in eight cavalry divisions. These troops participated in Operation Chahar and the Battle of Taiyuan during which Japanese regular and allied Inner Mongol forces finally captured eastern Suiyuan province.