Emperor Dezong of Tang - Period of Strong Chancellors Li Mi and Lu Zhi (early Zhenyuan Era)

Period of Strong Chancellors Li Mi and Lu Zhi (early Zhenyuan Era)

However, by this point, the empire was in deep trouble due to the wars, and Tufan forces, taking advantage of Tang's weakening, were making repeated incursions into Tang territory. Tufan's chancellor Shang Jiezan (尚結贊), in particular, believed that he would be able to conquer Tang if he could get three Tang generals out of the way — Li Sheng, Ma Sui, and Hun Zhen. With Emperor Dezong beginning to become paranoid about generals having too much power by this point, it was soon thereafter that rumors spread by Shang and Li's political enemy Zhang Yanshang, then a chancellor, made Emperor Dezong suspicious of Li Sheng, who was then the military governor of Fengxiang Circuit (鳳翔, in modern Baoji, Shaanxi). In 787, he recalled Li back to Chang'an to serve as chancellor as well, stripping him of his military command.

Meanwhile, Shang continued the next stage of his plan, by submitting a peace proposal through Ma. Emperor Dezong believed Shang's good faith and agreed to the treaty, despite Li's warnings. At Shang's request, Emperor Dezong sent Hun to meet with Shang and sign the treaty. On July 8, 787, the day set for the treaty signing, Shang ambushed Hun at the meeting site, intending to capture him, but Hun escaped with emergency aid from Luo Yuanguang and Han Yougui. As Ma was responsible for arranging the peace treaty with Shang, Emperor Dezong recalled him to Chang'an as well and stripped him of his command of Hedong Circuit (河東, in modern Taiyuan, Shanxi).

After the disaster, Emperor Dezong recalled Li Mi, who had been serving as the governor (觀察使, Guanchashi) of Shan'guo Circuit (陝虢, headquartered in modern Sanmenxia, Henan), to Chang'an to serve as chancellor, and soon thereafter, Li Mi effectively became sole chancellor. Under Li Mi's suggestion, Emperor Dezong instituted a regime where soldiers were encouraged to settle in the border region with Tufan and were promised land and seeds, to repopulate the border region and strengthen the defense. Li Mi also proposed a marriage alliance alliance with Huige's Heguduolu Khan Yaoluoge Dunmohe (藥羅葛頓莫賀) — a proposal that Emperor Dezong initially resisted due to his hatred for Huige — but finally agreed to, with Li Sheng and Ma also agreeing with Li Mi's opinion. With Huige (which was soon renamed Huigu) fighting with Tufan, and with Tufan's major vassal Nanzhao distancing itself from Tufan's campaigns against Tang, Tufan attacks on Tang began to weaken, such that Tang generals were beginning to have successes against Tufan.

By this point, however, Emperor Dezong was also extracting frequent tributes from regional governors for his own personal use. Li Mi tried to curb the emperor's hoarding of treasure by instituting an annual stipend for the emperor, which Emperor Dezong initially agreed to. However, even after the stipend was instituted, Emperor Dezong continued to demand tributes from regional governors and ordered that they not let Li Mi become aware of the tributes. When Li Mi still found out, he became depressed over this issue but did not dare to speak again about it.

Li Mi died in 789, and for some time, Li Mi's recommended successor, Dou Can, was the most powerful chancellor at court, but he soon lost Emperor Dezong's favor and was exiled (and eventually ordered to commit suicide). Lu Zhi became the main chancellor, and for some time, made ambitious proposals to reform the civil service system and logistics system, and reassert authority over regional governors — whom, by this point, Emperor Dezong was so apprehensive about such that he was not daring to impose governors unless he had explicit agreements from the key military officers of the circuits. (For example, after the death of Liu Xuanzuo (劉玄佐) the military governor of Xuanwu Circuit (宣武, headquartered in modern Kaifeng, Henan) in 792, Emperor Dezong was initially intending to commission his granduncle Wu Cou (吳湊) to replace Liu, but after Xuanwu soldiers mutinied and supported Liu Xuanzuo's son Liu Shining (劉士寧), Emperor Dezong did not dare to confront the Xuanwu army and instead agreed to commission Liu Shining.) Lu, however, was soon in conflict with Emperor Dezong's favorite official Pei Yanling — who was able to garner Emperor Dezong's favor by making Emperor Dezong believe that he was locating long-lost revenue resources for the imperial treasury. By 794, Lu had lost the power struggle with Pei and lost his chancellorship, and in 795 was exiled.