He proposed that civilian migrants supported by the government could simultaneously train as militia units while developing and cultivating remote regions which were under frequent attack by nomadic forces.
He fell victim to execution when political rivalries at the imperial court convinced Emperor Jing that Chao's death would curtail or at least mitigate the Rebellion of the Seven States.
The essays written by Chao which are preserved in the 1st century AD Book of Han do not reveal any influence of Confucian social or ethical ideas.
In a memorandum entitled "Guard the Frontiers and Protect the Borders" that he presented to the throne in 169 BC, Chao compared the relative strengths of Xiongnu and Han battle tactics.
[10] In regards to the Han armies, Chao deemed the swift-riding Xiongnu horsemen better prepared for rough terrain due to better stallions, better with horseback archery, and were better able to withstand the elements and harsh climates than Chinese soldiers.
It is clear from historical records that Emperor Wen approved of Chao's proposal and immediately enlisted people for service on the northern frontier.
[12] Chao wrote: It is necessary to settle permanent residents in border regions since expeditionary soldiers from other parts of the empire do not understand the character and capacities of the Hsiung-nu...The government will provide houses and land for the immigrants.
The government will build frontier communities that are rooted locally, tightly connected, mutually assisted, and militarily united against the "barbarians."
[15] Chao's memorial to the throne had a major influence on later court policy under Emperor Wu after his officer Huo Qubing (140–117 BC) decimated Xiongnu forces inhabiting the Hexi Corridor.
[18] As Chao Cuo makes very clear, the government's anti-merchant policies of raising taxes hardly affected those with great wealth while excessive taxation of peasants drove them from their plot of land and allowed merchants to move in:[16] Nowadays in a farming family of five members at least two of them are required to render labor service.
Farmers plough in spring, weed in summer, reap in autumn and store in winter; they cut undergrowth and wood for fuel and render labor services to the government.
They cannot avoid wind and dust in spring, sultry heat in summer, dampness and rain in autumn and cold and ice in winter.
On the other hand great merchants get profits of two hundred percent by hoarding stocks of commodities while the lesser ones sit in rows in the market stalls to buy and sell.
Though they never engage in farming and their women neither tend silkworms nor weave, they always wear embroidered and multicolored clothes and always eat fine millet and meat.
[16] Of this passage, the late Nishijima Sadao 西嶋定生 (1919–1999), professor emeritus at the University of Tokyo, wrote: "This indictment reveals striking contrasts between the lives of farmers and merchants in Former Han and shows that severe taxation merely impoverished the former and enriched the latter.
"[18] Chao helped orchestrate the central government's efforts to reduce in size and undermine the subordinate kingdoms in the Han Empire.