In 845 CE the "Great Anti-Buddhist Persecution/Reform" was launched. His reasoning was that to reduce foreign influence he needed funds for his army (which than would enforce tax law), which would be raised by stripping all Buddhist clergy of all possessions, temples, literature, properties and such.

Shaolin were either forced into into lay life or into hiding. During this time, followers of Christianity, Islam, Judaism and other non Taoist beliefs were persecuted as well. The persecution lasted for twenty months when Emperor Wuzong died and was succeeded by Emperor Xuanzong. On his ascension he and put forth a policy of tolerance in 846. For a few year it seemed that this had restored the Tang, yet.