It deals with a true story of a figure in Chinese history, Wu Xun, who spent years collecting money as a beggar to eventually found a free school for indigent children.

After initial release and despite praise from other Chinese Communist Party (CCP) leaders, Mao Zedong published an editorial criticized the film as "fanatically publicising feudal culture" and for its "tolerance for slandering the peasant revolutionary" and described the lead character as "reactionary feudalist ruler".

The Life of Wu Xun attained its unique status in Chinese movie history because of the lengthy political criticism campaign that was enacted against it.

In the People's Daily Mao attacked Wu Xun as a liberal whose literacy programs implied that revolution was not necessary.

A group of politicians, led by Kang Sheng and Mao's wife Jiang Qing, leveled charges against the film in order to discredit what they called "liberal" tendencies.