During the period of pre Qin dynasty, there were groups of people, called Rong(戎)and Di(狄), in the northern Shanxi and Shaanxi provinces, who were not the same kind of nomadic people as Xiongnu (Hun) since they lived in a mixed style of economic situation, half herding and half agricultural. But, in the traditional documents of the dynastic times, these groups of people have been described as the same kind of nomadic people like Xiongnu, some were even identified as the ancestors of Xiongnu. The misunderstanding of the identity of Rong and Di caused misunderstanding of the region where the Rong and Di lived. According to the traditional idea, the environment of the region of the northern Shanxi and Shaanxi had, as well as the steppe, supported nomadic life. The essential different ecological functions in early civilization creation between the environment of the northern Shanxi/Shaanxi and the environment of the steppe, therefore, were neglected. The recent archaeologist discoveries show that the life indicated by the settlement ruins, tombs, and life remains of Rong and Di people has been more a sedentary style, which had been combined with partly agricultural and partly herding activities. The archaeologist discoveries also show that before the Rong and Di times, the region of the northern Shanxi/Shaanxi had been occupied by a well developed prim agricultural economy. Since the climate changed colder about 5000 years ago, the herding activity developed significantly, and the pure prim agricultural economy was replaced by half agricultural and half herding. The Rong and Di, therefore, was not the representative group of nomadic in northern ancient China. The true nomadic people, which was represented by Xiongnu, appeared later than Rong and Di in China. The question of the origin of nomadic economy in China should be considered more with the Xiongnu instead of the Rong and Di. Since the recognition of the independent identity of the Rong and Di, the macro human geographical structure of the northern China then should consist of three great regions: the region of the Rong and Di, the standard agricultural region in the south where the Han people were living, and the typical steppe nomadic region in the north where the Xiongnu became occupiers.