Emperor Wu's long reign left the Han dynasty greatly expanded; however constant warfare had depleted the empire's coffers.

In 94 BC, then Prince Fuling was born to a favourite concubine of Emperor Wu, Zhao Jieyu (趙婕妤), who carried the title Lady Gouyi.

Emperor Wu was ecstatic in having a child at his advanced age (62), and because Consort Zhao purportedly had a pregnancy that lasted 14 months, the same length as the mythical Emperor Yao, he named Consort Zhao's palace gate "Gate of Yao's Mother."

Being misunderstood as a revolt, Prince Ju was defeated and went into exile, and both he and Empress Wei committed suicide soon afterwards.

In any case, before Emperor Wu's death, Li Guangli would surrender to the Xiongnu, while Liu Bo predeceased his father.

At Huo's suggestion, he also made ethnic Xiongnu official Jin Midi and general Shangguan Jie co-regents.

The plan was for them to accuse Emperor Zhao of being not actually Emperor Wu's son, and then for Liu Ze, a grandson of a former prince of Qi, to start a rebellion in Linzi (in modern Linzi District, Shandong), the former capital of the Principality of Qi, while Prince Dan would then start a rebellion from his Principality of Yan (roughly modern Beijing).

In the same year, at the suggestion of Du Yannian (杜延年), Huo started considering terminating some of the policies of Emperor Wu intended to raise revenues for the war efforts.

In 81 BC, after a major debate between proponents (the chief among whom was vice prime minister Sang Hongyang) and opponents of the state monopolies on salt, iron, and wine, the wine and iron monopolies were abolished, once again allowing the merchants to benefit from the profits of these essentials.

The Shangguans, Princess Eyi, Prince Dan of Yan, and Sang (who was resentful that his monopoly system, which he felt to be the key to sound finances for the state, was being dismantled), formed an anti-Huo conspiracy.

In 80 BC, Prince Dan sent a report to Emperor Zhao, accusing Huo of improperly exercising imperial authority.

The conspirators' plan was that as soon as Emperor Zhao authorised an investigation, Shangguan Jie and Sang would arrest and immediately execute Huo.

In 77 BC, a controversial incident involving the Xiyu (modern Xinjiang and former-Soviet central Asia) kingdom of Loulan (on northeastern edge of the Taklamakan Desert) would unfold itself, although whether Emperor Zhao played any role in the decision-making is unclear.

A few years earlier, the King of Loulan had died, and with Xiongnu support, one of his sons, Angui (安歸) succeeded him, and Angui started a policy of befriending Xiongnu and resisting Han, particularly because Luolan's geographical location meant that it was often ordered by Han to escort its imperial messengers, who were also rude to Loulan officials.

Fu accomplished this by claiming that he was there to reward Xiyu kings with jewels and other precious items, and then, setting a private meeting up with Angui, he stabbed him in the heart, and then, warning that any further action would bring a large Chinese army, he got the Loulan nobles to submit and make a brother of Angui, Weituqi (尉屠耆), who was friendly to Han, king.