Yangshao culture thrived 5000-3000 BC along middle Yellow River. Originated indigenously from local Peiligang and others, rejecting Central Asian source. Main food millet, supplemented by rice, pigs, dogs. Developed dryland farming, mixed animal husbandry, beer brewing from millet and rice. Early phase egalitarian clans around Banpo sites. Middle phase expanded hierarchies in western Henan. Late phase built China's first rammed earth wall at Xishan. Pottery spread east to Shandong Longshan, west to Majiayao and Central Asia. Artifacts show Caucasian traits like long noses, deep eyes, narrow faces in Wei River valley. Evidence indicates prehistoric west-east ethnic interactions. Society shifted from matrilineal debate to confirmed patrilineal per ancient DNA. Late phase formed chiefdoms with large houses and rich tombs at Xipo. All urn-buried children were girls near house foundations. Incised pottery marks possibly early numerals or Chinese precursors. World's oldest dragon statue from fifth millennium BC.