Zhu Rongji, former Chinese Premier who reshaped country’s economy, dies of illness at 98

Former Chinese Premier Zhu Rongji, one of the key figures behind China’s rapid economic transformation in the 1990s and early 2000s, has died at the age of 98. Chinese state media reported that Zhu died of illness in Beijing at around 11 am on Wednesday (local time). Known for his blunt manner and uncompromising approach to economic reform, Zhu served as China’s premier from 1998 to 2003. During his tenure, he pushed sweeping changes across the state-owned sector and played a crucial role in taking China into the World Trade Organisation (WTO) — a move that became a major milestone in the country’s integration with the global economy.

Zhu rose to prominence at a time when China was undergoing major economic changes following the reforms initiated under former leader Deng Xiaoping in 1979. As premier, Zhu sought to make China’s massive state-owned enterprises more efficient and financially sustainable.

His reform drive brought him into conflict with Communist Party conservatives as well as powerful managers of state-run companies. The restructuring resulted in millions of job losses as inefficient state enterprises were downsized or closed. However, the reforms also helped strengthen China’s industrial and economic competitiveness.

Zhu’s approach was widely associated with a willingness to take politically difficult decisions in pursuit of economic change. His tenure coincided with a period in which China was rapidly expanding its presence in the global economy.

From political exile to China’s top economic office

Zhu’s political journey was far from straightforward. Born in Hunan province in October 1928, he studied electrical engineering at Tsinghua University and joined the Communist Party in 1949.

His early career was shaped by China’s political upheavals. While working with the country’s state planning agency, Zhu was labelled a “rightist” after criticising Mao Zedong’s economic policies. During the Cultural Revolution, he was removed from his professional role and spent years doing manual labour on a farm, where he raised pigs and planted rice.

His fortunes changed after he was rehabilitated in 1978, when China’s reform era was beginning to take shape. Zhu subsequently climbed through the government ranks, eventually emerging as one of the country’s most influential economic policymakers.

Shanghai mayor to China’s premier

Zhu’s rise accelerated when he became mayor of Shanghai in 1987. He went on to become China’s vice premier in 1991 and entered the Communist Party’s Politburo Standing Committee in 1992.

His experience in Shanghai strengthened his reputation as an administrator focused on economic efficiency and reform. He was appointed premier in 1998, taking charge of China’s economic policy at a crucial stage in the country’s development. For the next five years, Zhu led an aggressive programme of economic restructuring while also overseeing China’s growing engagement with international trade.

WTO entry became a defining milestone

One of the most significant achievements associated with Zhu’s premiership was China’s entry into the World Trade Organisation (WTO). China’s WTO membership opened the door to much deeper integration with global markets and accelerated the expansion of Chinese exports. Over the following years, China emerged as a manufacturing powerhouse and eventually became the world’s biggest exporter.

Zhu’s role in pushing through the difficult economic and political changes required for WTO membership cemented his reputation as one of the most consequential reform-era officials. His efforts built on the foundation laid by Deng Xiaoping’s reforms, while adding a strong emphasis on efficiency, restructuring and international economic integration.

Reforms came with a heavy social cost

Zhu’s economic policies were not without controversy. His push to overhaul state-owned enterprises led to massive restructuring and millions of layoffs. The reforms were particularly difficult for workers who had depended on state enterprises for employment and welfare. Yet Zhu argued for greater efficiency and competitiveness, seeking to move state companies away from a system in which they could survive despite persistent losses. The changes helped reshape China’s economic structure and contributed to the country’s rapid growth in the years that followed.

Life after the premiership

Zhu stepped down as premier in 2003 and largely withdrew from frontline politics. Unlike many former senior Chinese leaders, he maintained a relatively low public profile after leaving office. He remained associated with Tsinghua University, where he had studied, and also supported rural education initiatives. Donations from royalties earned through his books were used to contribute to education in rural areas. His post-government life reflected a quieter phase after decades spent at the centre of China’s economic policymaking.

Why Zhu Rongji remains significant

Zhu’s legacy is closely linked to one of the most transformative periods in modern China’s economic history. He took charge when the country was moving rapidly from a largely state-controlled economic model towards a more market-oriented system integrated with global trade. His willingness to confront entrenched interests, restructure state enterprises and push through difficult reforms made him a central figure in China’s economic rise.

(With inputs from AP)

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