During Emperor Daizong's Reign
After Emperor Daizong took the throne, Li Fuguo became even more arrogant, stating to him,
You, Emperor, just remain in the palace. Let this old servant of yours handle what is outside.Emperor Daizong was secretly displeased, but in order to placate Li Fuguo, gave him the title of Shangfu (尚父, meaning, "like father") and ordered that he not be referred to by name. He also made Li Fuguo Sikong (司空, one of the Three Excellencies) and Zhongshu Ling (中書令) -- the head of the legislative bureau of government (中書省, Zhongshu Sheng) and a post considered one for a chancellor. Li Fuguo gave a major part of the command responsibilities to Cheng Yuanzhen. Carrying out further retaliation against Xiao Hua, Li Fuguo had Xiao further demoted.
Meanwhile, though, Li Fuguo did not expect that both Emperor Daizong and Cheng, who wanted more power, would turn against him. In summer 762, at Cheng's secret suggestion, Emperor Daizong issued an edict that stripped Li Fuguo of the titles of minister of defense and assistant of military affairs to the supreme commander—thus stripping him of military command—giving the latter post to Cheng. He also ordered Li Fuguo to leave the palace and take residence up outside, although he created Li Fuguo the Prince of Bolu. Li Fuguo became apprehensive and offered to retire, and Emperor Daizong declined and sent him away with formal respect.
Because Li Fuguo had killed Empress Zhang and had supported him for the throne, Emperor Daizong did not want to kill him openly. Instead, on November 8, 762, an assassin got into Li Fuguo's mansion and killed him, taking his head and an arm away as well. Emperor Daizong formally issued an order seeking the arrest of the assassin, and buried Li Fuguo in a grand ceremony, after having a wooden head and wooden arm carved to be buried with the rest of the body, although he gave Li Fuguo the unflattering posthumous name of Chou (醜, meaning "power abuser").
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