Ulmus pumila tree-dominated temperate savanna, which is distributed widely throughout the forest-steppe ecotone on the Mongolian Plateau, is a relatively stable woody-herbaceous complex ecosystem in northern China. Relatively more attention has been paid to the degradation of typical steppe areas, whereas less focus has been placed on the succession of this typical temperate savanna under the present management regime. In this study, we established 3 sample plots 100 m×100 m in size along a gradient of fixed distances from one herder’s stationary site and then surveyed all the woody plants in these plots. A spatial point pattern analysis was employed to clarify the spatial distribution and interaction of these woody plants. The results indicated that old U. pumila trees (DBH ≥ 20 cm) showed a random distribution and that medium U. pumila trees (5 cm ≤ DBH < 20 cm) showed an aggregated distribution at a smaller scale and a random distribution at a larger scale; few or no juvenile trees (DBH < 5 cm) were present, and seedlings (without DBH) formed aggregations in all 3 plots. These findings can be explained by an alternate seasonal grazing-mowing regime (exclosure in summer, mowing in autumn and grazing in winter and spring); the shrubs in all 3 plots exist along a grazing gradient that harbors xerophytic and mesophytic shrubs. Of these shrubs, xerophytic shrubs show significant aggregation at a smaller scale (0-5.5 m), whereas mesophytic shrubs show significant aggregation at a larger scale (0-25 m), which may be the result of the dual effects of grazing pressure and climate change. Medium trees and seedlings significantly facilitate the distributions of xerophytic shrubs and compete significantly with mesophytic shrubs due to differences in water use strategies. We conclude that the implementation of an alternative grazing-mowing regime results in xerophytic shrub encroachment or existence, breaking the chain of normal succession in a U. pumila tree community in this typical temperate savanna ecosystem. This might eventually result in the degradation of the original tree-dominated savanna to a xerophytic shrub-dominated savanna.