Zhu Rongji's mixed legacy: The late former premier is responsible for some of China's biggest problems
The merits of the charismatic and reform-minded politician are undisputed. However, Zhu Rongji also sowed the seeds for the real estate bubble, and rural people became poorer due to his policies.
Zhu Rongji, a charismatic Chinese politician who died last week, implemented a tax reform in 1994 that had far-reaching consequences. The reform, which aimed to strengthen the central government's finances, led to a significant increase in the central government's revenue, but also forced local governments to seek new sources of income, including selling land to developers.
As a result, millions of farmers were evicted from their land, often without adequate compensation, and many were left with difficult living situations. The land sales also contributed to a massive housing bubble, which burst in 2021, causing wealth losses for many Chinese citizens and leading to cautious consumer spending.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
