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An exam system was implemented by the second emperor, Yangdi (AD 568-618), which was based on the study of Confucian classics. This was designed to attract scholars from the southern and north-eastern élites into the bureaucracy. Yangdi was extrememly ambitious and energetic, pursuing an active foreign policy and extending the trade routes into Central Asia and the West.
The failure of military campaigns in Korea in 612 and 614 and against the Turks however, financially ruined the dynasty. Yangdi fled south, leaving the north to be run by various rebel regimes. Floods and peasant uprisings ensued, adding to the disastrous events of the previous few years. When Yangdi was eventually murdered by members of his entourage, a general who had been responsible for defending China against the nomads, Li Yuan (known posthumously as Emperor Gaozu), rebelled, and marched on the captial Chang'an, where he founded the Tang dynasty in 618.