Since the rule of Emperors Wen and Jing in the early Han Dynasty, the court and the common people have lived in stability, with the country growing strong and the people becoming prosperous. After Emperor Wu ascended the throne, relying on this economic foundation, he changed the traditional governing ideology of his ancestors, aspiring to establish eternal achievements and completely wash away the humiliation of foreign aggression suffered since the time of Emperor Gaozu (Liu Bang). Thus, he naturally embarked on the ideological path of "rejecting all schools of thought and respecting only Confucianism." Although Emperor Wu strongly promoted Confucianism and promoted a large number of Confucian scholars, at that time, Taoist thought still pervaded both the court and the countryside. Especially in his later years, Emperor Wu himself was fond of Taoist practices related to immortals and alchemists, even more so than Emperor Qin Shi Huang.

In the fourth year of Yuanshou (119 BCE), Emperor Wu honored the alchemist Li Shaoweng as the "General Wencheng" and followed his advice. Later, he conferred the title of "Marquis Letong" on another alchemist, Luan Da, because Luan claimed to be able to refine cinnabar into gold, control ghosts and gods, and perform other magical arts. Emperor Wu even married his daughter, Princess Wei Chang, to Luan Da, making Luan's wealth and status comparable to that of a prince or marquis. However, Luan Da was eventually killed for his falsehoods and failure to achieve anything.
Due to his passion for the arts of immortals and alchemists, Emperor Wu built five shrines, constructed the Ganquan Palace, erected dew-collecting plates, and built imaginary structures modeled after the fairylands in the sea, such as Penglai, Fangzhang, Yingzhou, and Huluang. Moreover, his belief in alchemists allowed witches to enter and leave the palace at will, eventually leading to widespread rumors of debauchery and obscenity. This culminated in the famous "Witchcraft Incident" during Emperor Wu's reign, in which the crown prince was forced to commit suicide.
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Because of Emperor Wu's preference, Taoist practices related to immortals and alchemists—including those absurd and far-fetched Taoist arts—flourished during his reign. This laid the foundation for the later development of Taoist immortal and alchemical thought in the Eastern Han, Wei, and Jin dynasties, and to a certain extent, promoted the formal formation of Taoism in the Northern Wei Dynasty.
