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Yu became a bestselling author in China and as of 2012, had written more than 30 books. However, his criticisms of the government eventually caused his works to be banned in mainland China.

His house arrest, and a concomitant travel ban, lasted until January 2012, at which point he and his family emigrated to the US. Following his emigration, he submitted a nine-page report detailing his alleged torture to the US State Department and the United Nations Human Rights Council. He stated that he was continuing to write Liu's biography, and was also at work on a new biography of Chinese president Hu Jintao titled "Hu Jintao: Cold-Blooded Tyrant".

In 2012, Yu was named the winner of the 2012 Civil Courage Prize of the US-based Train Foundation. The prize recognizes "steadfast resistance to evil at great personal risk — rather than military valor." The prize comes with a $50,000 honorarium. He was the first Chinese person to win the award, and he stated that he hoped the prize would encourage China's dissidents.

Yu Jie is also active in the Chinese dissident movement, and was arrested and allegedly tortured in 2010 for his friendship with Nobel Peace Prize laureate Liu Xiaobo and a critical biography of Prime Minister Wen Jiabao titled China's Best Actor. Following more than a year of house arrest, Yu emigrated to the US with his family in January 2012. Later that year, he was awarded the Civil Courage Prize of the Train Foundation. More recently, he has become among the most outspoken Chinese-dissident supporters of Donald Trump's policies towards China.

Yu was detained by security officials in July 2010 to discuss his upcoming book China's Best Actor: Wen Jiabao, "a scathing critique" of China's prime minister that Yu intended to publish in Hong Kong. The book argued that Wen's warm, empathic public persona was simply a facade, and that he shared the same goals of other Chinese leaders. According to Yu, one official stated that his book was "harming state security and the national interest", and if it were published, Yu would probably be imprisoned "for many years". Yu nonetheless proceeded with publication of the book in August.

On October 8, 2010, Yu's good friend Liu Xiaobo was named the winner of the Nobel Peace Prize. On October 13, Yu was placed under house arrest, allegedly for his plans to write a biography of Liu as well as for having proceeded with the publication of China's Best Actor. He later wrote that during this period, "I was tortured by the country’s secret police and nearly lost my life". According to Yu, he was stripped naked, burned with cigarettes, and beaten until he was hospitalized.

In 2004, Yu published the piece "Apologies to Tibet" (向西藏懺悔 ) on boxun.com, which expressed regret for China's rule of Tibet and praised the efforts of Palden Gyatso, a pro-independence monk. His piece was criticized by Chinese netizens and he was heckled by overseas students in Los Angeles for attacking "national unity", but he dismissed these critics as angry brainwashed youth. Yu Jie also promotes reconciliation with Japan, the US invasion of Iraq, and religious freedom in China for Christians, after converting to Christianity himself.

Yu has a wife, Liu Min, and one son, Yu Guangyi. He converted to Christianity in 2003, and in China was a member of a house church.

His first book, Fire and Ice, included extensive political and social criticism. Upon its 1999 publication, Yu became a "literary sensation". In the same year, he met and befriended democracy activist Liu Xiaobo, and became active in the Chinese dissident movement. As part of his work with Liu, he read and commented on drafts of the democracy manifesto Charter 08 and helped found the Independent PEN Center.