Emperor Yang creates his wife Crown Princess Xiao empress, and Yang Zhao crown prince, in spring 605.
He also abolishes the offices of military commandants.
He, at this time, trusts Empress Xiao's brother Xiao Cong the Duke of Ju (Western Liang's last emperor) and makes him, as well as many of her other relatives, important officials, creating for him the greater title of Duke of Liang.
Starting in 605, Emperor Yang also begins a massive number of construction projects—including the building of the imperial palace at Luoyang, described to be particularly luxurious.
Further, he conscripts a large number of men to build the Tongji Canal, connecting Luoyang with the Yellow River and connecting the Yellow River with the Huai River, as well as to rebuild the Han Canal, connecting the Huai River and the Yangtze River.
The two canals, which will eventually become parts of the Grand Canal of China, are said to be constructed within five months, but at substantial cost of life—forty to fifty percent of the men employed.
Emperor Yang also orders that some forty secondary palaces be built around the empire, so that he can visit the various provinces, arguing that he needs to do so to see the conditions of the empire so that he can govern effectively.