The end of an era for China's economy

China's economy faced the end of an era with the passing of Zhu Rongji, who turned 97. While he was not the sole architect of China's economic reforms, Zhu Rongji was undoubtedly the most skilled, versatile, and far-sighted leader during the country's greatest era of transformation from 1991 to 2003. He played a crucial role in overseeing both macroeconomic and microeconomic policies, excelling in a manner unmatched by any other Chinese leader.

Zhu Rongji's tenure marked the continuation and acceleration of the privatization of state-owned enterprises, a process that had started earlier. His most notable achievements included championing China's successful bid to join the World Trade Organization (WTO), which propelled China's export industries to new heights and attracted significant foreign investment. Additionally, Zhu Rongji spearheaded a deregulation program aimed at enticing foreign businesses to manufacture goods within China's borders.

In response to the Asian financial crisis of 1997, which triggered a surge of bad loans, Zhu Rongji stepped in to rescue the banks, and economic growth swiftly recovered. Furthermore, he devised one of the most significant tax reforms in China's modern history, shifting substantial local government revenue to the central government while empowering local governments to borrow more money and sell land leases to sustain their operations.

Given the circumstances, it is clear that Zhu Rongji deserves recognition as one of history's great heroes.

During Zhu Rongji's time in office, East Asia was home to 1.22 billion people living on less than $3 a day (in 2021 dollars), accounting for more than half of the world's population. By the time Xi Jinping became China's top leader, that number had plummeted to one-sixth of its former figure.