The general Yu Lie and Yuan Xiang warn Xuanwu in 501 that Yuan Xi is growing corrupt and Yuan Xie is growing too popular, and suggests that they be relieved of their posts.

Xuanwu does so, and formally personally takes over governmental matters, but at his age, he cannot actually properly handle governmental affairs himself, so his trusted attendants and Gao Zhao begin to become more powerful and corrupt.

Traditional historians generally regard this as the starting point of Northern Wei's decline.

Late in 501, Yuan Xi, displeased that his power is being stripped and fearful that he will be killed, plots a rebellion to secede with the provinces south of the Yellow River.

His plot is discovered, however, and he is executed.

From this point on, Xuanwu grows increasingly suspicious of members of the imperial clan.

Later in 501, Xuanwu creates Yu Lie's niece, Consort Yu, empress.

Near the end of the year, with Xiao Yan's forces crushing Xiao Baojuan's, Xuanwu's general Yuan Ying suggests that a major attack be launched against Southern Qi to take advantage of Southern Qi's civil war.

However, Xuanwu only authorizes small scale attacks, which are generally fruitless.