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Taiping victory and Prince Gong

Under the command of Zeng Guofan, the victorious Xiang Army defeated the Taiping rebel army in a hard-fought battle at Tianjing (present-day Nanjing) in July 1864. Zeng was rewarded with the title of "Marquess Yiyong, First Class", while his brother Zeng Guoquan, along with Li Hongzhang, Zuo Zongtang and other Han Chinese officers who fought against the Taiping rebels, were rewarded with auspicious decorations and titles. With the Taiping rebel threat receding, Cixi focused her attention on new internal threats to her power. Of special concern was the position of Prince Gong, who was Prince-Regent in the imperial court. Prince Gong gathered under his command the support of all outstanding Han Chinese armies. In addition, Prince Gong controlled daily court affairs as the head of the Grand Council and the Zongli Yamen (the de facto foreign affairs ministry). With his increasing stature, Prince Gong was considered a threat to Cixi and her power.

Although Prince Gong was rewarded for his conduct and recommendation of Zeng Guofan before the Taiping rebels' defeat, Cixi was quick to move after Cai Shouqi, a minor scribe-official, filed a memorial accusing Prince Gong of corruption and showing disrespect to the emperor. Having built up a powerful base and a network of allies at court, Prince Gong considered the accusations insignificant. Cixi, however, took the memorial as a stepping stone to Prince Gong's removal. In April 1865, under the pretext that Prince Gong had "improper court conduct before the two empresses," among a series of other charges, the prince was dismissed from all his offices and appointments, but was allowed to retain his status as a noble. The dismissal surprised the nobility and court officials and brought about numerous petitions for his return. Prince Gong's brothers, Prince Dun and Prince Chun, both sought their brother's reinstatement. Prince Gong himself, in an audience with Cixi and Ci'an, burst into tears. Bowing to popular pressure, Cixi allowed Prince Gong to return to his position as the head of the Zongli Yamen, but rid him of his title of prince regent. Prince Gong would never return to political prominence again, and neither would the liberal and pro-reform policies of his time. Prince Gong's demotion revealed Cixi's iron grip on politics, and her lack of willingness to give up absolute power to anyone – not even Prince Gong, her most important ally in the Xinyou Coup.