After the founding of the dynasty by Chu Yuean-chang, important questions had to be dealt with apart from the social legislation. What was to be done, for instance, with Chu's helpers? Chu, like many revolutionaries before and after him, recognized that these people had been serviceable in the years of struggle but could no longer remain useful. He got rid of them by the simple device of setting one against another so that they murdered one another. In the first decades of his rule the dangerous cliques of gentry had formed again, and were engaged in mutual struggles. The most formidable clique was led by Hu Wei-yung. Hu was a man of the gentry of Chu's old homeland, and one of his oldest supporters. Hu and his relations controlled the country after 1370, until in 1380 Chu succeeded in beheading Hu and exterminating his clique. New cliques formed before long and were exterminated in turn.

Chu had founded Nanking in the years of revolution, and he made it his capital. In so doing he met the wishes of the rich grain producers of the Yangtze delta. But the north was the most threatened part of his empire, so that troops had to be permanently stationed there in considerable strength. Thus Peking, where Chu placed one of his sons as "king", was a post of exceptional importance.

In Chu Yuean-chang's last years (he was named T'ai Tsu as emperor) difficulties arose in regard to the dynasty. The heir to the throne died in 1391; and when the emperor himself died in 1398, the son of the late heir-apparent was installed as emperor (Hui Ti, 1399-1402). This choice had the support of some of the influential Confucian gentry families of the south. But a protest against his enthronement came from the other son of Chu Yuean-chang, who as king in Peking had hoped to become emperor. With his strong army this prince, Ch'eng Tsu, marched south and captured Nanking, where the palaces were burnt down. There was a great massacre of supporters of the young emperor, and the victor made himself emperor (better known under his reign name, Yung-lo). As he had established himself in Peking, he transferred the capital to Peking, where it remained throughout the Ming epoch. Nanking became a sort of subsidiary capital.

This transfer of the capital to the north, as the result of the victory of the military party and Buddhists allied to them, produced a new element of instability: the north was of military importance, but the Yangtze region remained the economic centre of the country. The interests of the gentry of the Yangtze region were injured by the transfer. The first Ming emperor had taken care to make his court resemble the court of the Mongol rulers, but on the whole had exercised relative economy. Yung-lo (1403-1424), however, lived in the actual palaces of the Mongol rulers, and all the luxury of the Mongol epoch was revived. This made the reign of Yung-lo the most magnificent period of the Ming epoch, but beneath the surface decay had begun. Typical of the unmitigated absolutism which developed now, was the word of one of the emperor's political and military advisors, significantly a Buddhist monk: "I know the way of heaven. Why discuss the hearts of the people?"