Zhu Rongji, Former Chinese Premier Who Drove Economic Reforms, Dies At 97

Former Chinese premier Zhu Rongji, who played a key role in restructuring China’s economy and negotiating the country’s entry into the World Trade Organisation (WTO), has died aged 97, according to an official obituary released by state news agency Xinhua on Wednesday.

Zhu served as premier from 1998 to 2003 and was closely associated with reforms to China’s centrally planned economy, the restructuring of state-owned enterprises (SOEs), efforts to tackle corruption and the country’s opening to international markets. According to South China Morning Post, he was also involved in negotiations that led to China’s entry into the WTO in 2001.

Born in 1928 in Changsha, the capital of Hunan province, Zhu graduated from Tsinghua University in 1951 with a degree in electrical engineering. He then joined the civil service, working on regional and national economic policy.

Zhu became vice-premier in charge of China’s economy in 1991 and held the position until 1998, when he became premier. His rise came during a period when high inflation, mounting debt and losses at state-owned enterprises were putting pressure on China’s financial system.

During the 1990s, Zhu sought to address these risks by centralising fiscal policy, cutting red tape and closing or privatising failing enterprises. His SOE reforms focused on clearer property rights and separating government functions from business operations.

Xinhua’s obituary said Zhu also promoted the re-employment of laid-off and unemployed workers and strengthened the social-security system. It said he shifted towards proactive fiscal and monetary policies to maintain stable and rapid economic growth.

Zhu led negotiations that secured China’s entry into the WTO in 2001. According to SCMP, the move opened China further to international markets and brought major changes to the country’s economy.

He also played a role in ensuring the smooth handover of Hong Kong in 1997 and in Beijing’s handling of the Asian financial crisis that year. Xinhua said Zhu helped China navigate the crisis and “resolutely safeguard the prosperity and stability of Hong Kong as an international financial centre”.

The official obituary described Zhu as “an outstanding member of the Communist Party, a long-tested and loyal Communist fighter, an outstanding proletarian revolutionary and statesman, and an exceptional leader of the party and the state”.

Xinhua highlighted Zhu’s role in advancing economic-system reform, including his overhaul of state-owned enterprises. It also described the negotiations that secured China’s WTO membership as “arduous negotiations”.

After retiring from the premiership in March 2003, Zhu continued to support the central authorities under the leadership of Hu Jintao and Xi Jinping, according to the obituary.

“He remained concerned about the great cause of socialism with Chinese characteristics and firmly supported the building of party conduct and integrity and the fight against corruption,” it read.

SCMP reported that Zhu also played a key role in China’s handling of the Asian financial crisis and the 1997 handover of Hong Kong.