In 549, during peace negotiations that Xiao Gang entered with Hou, Hou was demanding that Xiao Daqi be sent to him as a hostage, but that term was never agreed to before peace negotiations collapsed over other issues.
When his attendants asked him how he was able to keep his composure, he explained, "If the bandit [Hou] wanted to maintain the leadership, then he would surely not kill me.
Xiao Daqi, however, responded, "Since the empire plunged into warfare, I have decided not to live in a humiliating manner.
In fall 551, with Hou believing that he might be nearing defeat, he wanted to take the throne.
Hou executed all of Emperor Jianwen's sons under his control, including Xiao Daqi.
When the executioners arrived at Xiao Daqi's residence, he was giving a lecture on the Tao Te Ching.