The Reign
When Suzong lay dying in 762, Empress Zhang, as Consort Zhang had become, plotted against the crown prince. Li Fuguo and Cheng Yuanzhen foiled the plot, the empress was killed, and Li Yu succeeded his father. Li Fuguo now expected to govern, and is said to have told the new emperor to stay in the palace and leave the business of state to him.
Daizong was privately furious but kept his counsel. He honoured Li Fuguo with the title Shangfu ("venerable father") and made him Sikong, one of the Three Excellencies, and Zhongshu Ling, head of the Legislative Bureau. Meanwhile, command of the palace troops passed to Cheng Yuanzhen.
Later in 762, at Cheng's suggestion, Daizong issued an edict stripping Li Fuguo of his offices and his military command and ordering him to live outside the palace, although he was allowed to keep the title Prince of Bolu. Not long afterwards Li Fuguo was killed by an unknown assassin.
The End of the Rebellion
The An Lushan rebellion finally ended in 763 with the death of the last rebel leader, Shi Chaoyi. To secure peace, many former rebel generals were confirmed as military governors in the northeast, where they ruled almost independently. The same year a Tibetan army briefly occupied Chang'an and Daizong fled the capital; the general Guo Ziyi recovered the city, and Cheng Yuanzhen, blamed for the disaster, was dismissed. In 764 and 765 the general Pugu Huai'en also rose in revolt.
Restoring the Grain Supply
The official Liu Yan led the reopening of the Bian Canal, which linked the Huai and Yellow rivers and had carried grain from the south to the capital before the rebellion. Fighting had left it silted and unusable. Once it was restored, Chang'an again received adequate food supplies, and the region could begin to recover from the war.
Buddhism at Court
Daizong had at first favoured Daoism but became a devout Buddhist, influenced by his chancellors Yuan Zai, Du Hongjian and Wang Jin. Yuan argued that the Buddha's protection had carried the dynasty through the rebellions of An Lushan and Pugu Huai'en.
Buddhist principles came to shape much of the emperor's policy. He showed great honour to the monk Amoghavajra (Bukong), who was given a ducal title, the monasteries of Chang'an grew rich, and monks and nuns were exempted from corporal punishment. Traditional historians blamed this influence for the poor government and lax justice of the reign.
Favourites and Governors
After Cheng Yuanzhen's fall, the eunuch Yu Chao'en rose to dominate the palace armies until he was killed in 770 in a plot organised by Yuan Zai. Yuan in turn became notorious for corruption and was executed in 777.
The weakness of the court was plain in 776, when the acting military governor of Biansong Circuit, Tian Shenyu, died and the officer Li Lingyao seized control. Daizong ordered the neighbouring circuits to attack, and Li Lingyao was quickly defeated. The court gained little: several of Biansong's prefectures went to the military governor of Pinglu, Li Zhengji, who moved his headquarters into the territory he had taken.