In the first year of Baoying (762), eunuch Li proclaimed himself emperor, and the Anshi Rebellion was put down in the same year. In the first year of Guangde (763), Tubo captured Chang 'an and Li Yu fled to Shaanxi. Later, the famous soldier Guo Ziyi defeated Tubo and put down the Pugu Huai 'en rebellion.

During his reign, he decided to kill Prime Minister Li, Yu Chaoen and Yuan Zai and exile eunuch Cheng. Reform grain transportation, salt price and food price. And hired Yang Wan as prime minister to stabilize society and develop production.

In the 14th year of Dali (779), Li Yu died in Chenzi Inner Hall of Daming Palace. Xiaowu, Wen Rui, posthumous title, was buried in Yuanling.

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After Li Yu ascended the throne, he used eunuch Cheng and others to deprive Li, who was honored as the "father of the country", of his power and made him King Bolu. Li was forced to become an official and was assassinated by "thieves" soon. Later, Cheng commanded the imperial army, slandered courtiers and lost the hearts of the people. Later, on the advice of Liu Heng, a doctor in Taichang, Li Yu cut Cheng off, put him in a field, and then exiled him to Qinzhou.

In the fifth year of Dali (770), Li Yu conspired with Yuan Zai to punish Yu Chaoen, who was in charge of the army. After Yuan Zai came to power, he was autocratic and monopolized private property, which caused Li Yu's dissatisfaction. In the 12th year of Dali (777), Li Yu decided to order General Wu of Sargingo to arrest Yuan Zai and kill him.

Wang Fuzhi, a thinker in the Ming and Qing Dynasties, believed that Li Yu was deeply influenced by Laozi's thought of "taking what he wants, he must stick to what he wants" and made good use of the imperial power: "The reason why Li evil was killed, the reason why Yuan evil flowed, and the reason why the evil was punished in the Chao Dynasty; Yuan Zai, a fake hand, was used to kill Chao En, and Yuan Zai, who was a vicious one, was also a family. "