Zhu Rongji has died in Beijing, aged 97. Premier of China from 1998 to 2003, he was one of the most consequential figures of the reform era.
He was born in Changsha in 1928. His father died before he was born and his mother when he was nine; he was raised by an uncle who paid for his schooling. He got into Tsinghua to study electrical engineering in 1947, became a student leader, and joined the Communist Party in 1949.
Purged during the Cultural Revolution and sent for five years to a cadre school – where he raised pigs and planted rice – he was rehabilitated in 1978, and rose on the basis of his proven competence. Deng Xiaoping’s assessment was that, of the leadership at the time, “Zhu Rongji is the only one who understands economics”.
Zhu led the 1994 tax-sharing reform, which rebuilt the central government’s fiscal capacity, at a time when Beijing controlled only a fraction of national revenue. Without that reform there is no poverty alleviation campaign, no massive development program of the western and central regions, no high-speed rail network.
He pursued “grasp the large, release the small”, consolidating the strategic state sector while letting smaller loss-making firms go. And in 1998 he ordered the People’s Liberation Army out of commercial business entirely – which is part of the reason why China’s military has never become the sort of corrupt political force that has plagued other countries.
Zhu managed China’s response to the Asian financial crisis in 1997, keeping capital controls firmly in place, refusing to devalue the renminbi, and expanding fiscal spending into infrastructure. Devaluing would have triggered a cascade of competitive devaluations across a region already in collapse. Much of Southeast Asia owes China a significant debt on this score.
The short-term costs to the restructuring of the SEOs were substantial. State enterprise employment fell from 77 million in 1995 to 42 million by 2003. Roughly 40 million people lost access to the “iron rice bowl”. But alongside the restructuring, China put in place the basic living security system for laid-off state enterprise workers, the unemployment insurance system, the minimum living guarantee for urban residents, sustained campaigns against wage arrears and for re-employment.
Compare that with what happened in Russia in the 1990s. Yeltsin and his cronies handed control of the economy to a few dozen oligarchs, output halved, male life expectancy fell to around 57, and millions fell into unemployment, destitution and misery. China kept the commanding heights in public hands, kept capital controls in place, kept the Party’s authority over capital, and put a safety net under the people who lost out. In the process, it emerged as the workshop of the world.
Zhu was well-known for his hatred of corruption, and his initiatives in that field prefigure the systematic campaign launched by President Xi. “I will prepare 100 coffins for the corrupt, and one for me, for I will die of fatigue”. He is reported to have read some 16,000 letters a year from ordinary citizens in order to understand people’s concerns. He raged at “bean curd construction” – building projects where corruption had led to dangerously poor quality. In retirement he gave away tens of millions of yuan in book royalties to rural education.
Asked by Western journalists in 1990 whether he was China’s Gorbachev, he replied: “No, I am China’s Zhu Rongji”. A very good thing too. Rest in power.
>LARP for decades about "le satanic pedophile deep state"
>fantasize about overthrowing them
>stockpile massive amount of firearms
>LARP literally proven true, but does nothing because terrified of own police, let alone military
>LARP about fighting the PLA and Russians instead
🚨 BREAKING NEWS
After spending the ENTIRETY of Argentina's GDP of the century (15 pesos) on FIFA bribes, Javier Milei announces that his "nation" is now a NINTH WORLD COUNTRY
🇦🇷⚽️🏛️ INSOLITE !
Javier Milei devient la risée du monde : il a oublié de supprimer un tweet programmé annonçant la victoire de l’Argentine et à la suite un jour férié… alors que l’équipe a perdu la finale.