Zhu Rongji’s legacy: how the late premier reshaped state firms, Pudong and China’s economy

Zhu Rongji’s legacy: how the late premier reshaped state firms, Pudong and China’s economyRemembered as a candid, decisive leader, the former Chinese premier championed entrepreneurship, welcomed foreign expertise and brought urgency to economic policymaking5-MIN READ5-MIN0ListenPublished: 9:00pm, 13 Aug 2026Updated: 9:48pm, 13 Aug 2026Turn-of-the-century images of Zhu Rongji alongside former US president Bill Clinton have largely accompanied coverage following the former Chinese premier’s death on Wednesday.The moment in April 1999 was more than a diplomatic milestone. It underpinned some of China’s most consequential reforms that defined Zhu’s tenure, from its drive to join the World Trade Organization to an overhaul of the state sector and opening its markets to the world.And in recent years, Zhu’s historic trip to Washington has also become a subject of reflection among American lawmakers, think tanks and officials, as a strategic rivalry with China has emerged across nearly every economic and business front.Zhu, who died on Wednesday at the age of 97, was also remembered for promoting entrepreneurship, introducing foreign management expertise, and reviving Chinese enterprises, according to four people who knew him for decades.00:52Former Chinese premier Zhu Rongji dies at age 97“Intelligent, insightful, outspoken and decisive,” said Zhang Chongqing, honorary president of China-group-companies-association" class="entity-link entity-organization" data-entity-id="184600" data-entity-type="organization">China Group Companies Association, recalling his first impression of Zhu and their early work together on economic reform, dating back to 1980 when they were both at China’s top economic planner.Zhang, who pioneered enterprise reform as deputy director general of the government-backed China-enterprise-management-association" class="entity-link entity-organization" data-entity-id="184601" data-entity-type="organization">China Enterprise Management Association – now known as the China-enterprise-confederation" class="entity-link entity-organization" data-entity-id="184602" data-entity-type="organization">China Enterprise Confederation – in the 1980s and ’90s, recalled the eagerness of the late premier to learn foreign management expertise and find a way forward for state-owned enterprises, which were a core part of China’s centrally managed economy for decades.When Beijing was forging ties with the Switzerland-based European Management Forum in the 1980s, before it became known as the World Economic Forum in 1987, Zhu was an active participant in their joint meetings.Zhang recalled how Zhu did not simply give a prepared speech at these meetings; he also dared to speak candidly and engage directly with participants.“On one occasion in Beijing, he shared his office phone number” with foreign guests, Zhang said. “He was a bold, free-spirited sort of person – daring, open, and uninhibited in his speech.”Domestically, Zhu placed great value on home-grown entrepreneurs.Zhang recalled a particular moment in 1996, about two years before the retirement of Zhao Zhongyu from Pangang Group – the southwestern Chinese steelmaker that Zhao had spent decades building into a leading producer.Further ReadingZhao had asked Zhu, who was then vice-premier, to conduct a field inspection of Pangang. Zhu was said to have replied quickly, and he went on to help advance the company’s technological innovation and preparations for a stock market listing.When it came to supporting entrepreneurs, “he was very generous”, Zhang recalled.After all, what would have happened if state-owned enterprises hadn’t been reformed?Zhang Chongqing, China Group Companies AssociationAs premier, Zhu launched China’s biggest reform campaign involving state-owned enterprises (SOEs), bankrupting tens of thousands of inefficient “zombies” and laying off millions of workers. The controversial measures helped revitalise the economy and create room for more efficient private and foreign-owned firms.Despite the lay-offs becoming a source of generational pain in regions heavily reliant on SOEs, Zhang said it was a price that had to be paid.“He was surely a leader who made outstanding contributions to driving China’s economic revitalisation,” Zhang said of the late premier. “That deserves full recognition.“After all, what would have happened if state-owned enterprises hadn’t been reformed?”Zhu Tian, a chair professor and co-dean of the Shanghai-based China Europe International Business School (CEIBS), said he had long been impressed by the “immense personal charisma” of Zhu Rongji, dating back to the early days of Tsinghua University’s School of Economics and Management, which the former leader helped establish in 1984.Although trained as an engineer – a common background among leaders of his generation – Zhu Rongji recognised the importance of economic management. In addition to helping set up the business school, he advocated for the broad adoption of advanced foreign management textbooks to align teaching and research with international standards.The CEIBS professor, who graduated with a degree in management information systems from the business school in 1986, recalled how the founding dean would write personal yearbook messages to graduates, and had made a point of noting to him the importance of “combining economics, management and technology”.“[Zhu Rongji] was the premier with the deepest understanding of the economy; he possessed exceptional leadership and execution capabilities,” professor Zhu Tian added. “Pragmatic, witty and wise, he eschewed empty rhetoric in favour of plain speaking.”[Zhu Rongji] was always curious and investigative, and had the urgency to bring change to ChinaJoerg Wuttke, former president of EU Chamber of Commerce in ChinaThe late leader also introduced a powerful advisory board of world-class entrepreneurs and scholars in 2000. The current cohort includes SpaceX founder Elon Musk, Meta Platforms founder Mark Zuckerberg, Apple CEO Tim Cook, Bridgewater founder Ray Dalio, JPMorgan Chase CEO Jamie Dimon, Blackstone chairman Stephen Schwarzman and former United States Treasury secretary Henry Paulson.Up until about 2018, the former premier was still regularly meeting with visiting foreign entrepreneurs. He remained the board’s “honorary chairman” until 2024, when the title was passed to former vice-president Wang Qishan. Zhu Rongji was then designated the “founding honorary chairman”.For Joerg Wuttke, who worked in China for decades, Zhu Rongji was always keen to sit down with foreign investors, listen to their concerns and present a friendly face – in sharp contrast with his impatience towards Chinese officials who delivered long, unproductive reports.When the late leader was tackling economic work as vice-premier in the early 1990s, Beijing faced deep scepticism overseas and was making extensive efforts to attract foreign investment.“[He has been] my hero since … he was still vice-premier,” said Wuttke, former president of the European Union Chamber of Commerce in China, who had frequent contact with Zhu Rongji.On one occasion, Wuttke recalled, when the former leader was asked what kind of economic data he valued the most, he answered simply: “Tax.” During his tenure as vice-premier, Zhu coordinated the overhaul of China’s central-local tax-sharing and fiscal reform.“He was never shy of pointing out problems,” Wuttke recalled from their meetings. “He was always curious and investigative, and had the urgency to bring change to China.”For many people from Shanghai, the late premier, who was once the city’s mayor, is remembered as one of the most important architects of the Pudong New Area, now a booming district in one of the mainland’s most developed metropolises, and home to the Shanghai Stock Exchange and a Disney resort.Zhou Hanmin, now a standing committee member of the Chinese People’s Political Consultative Conference, and once a prominent think tank researcher who advised in the 1980s and ’90s on Pudong’s development, said Zhu Rongji’s resolve and reformist outlook helped drive the district’s rise.At the end of April 1990, the Shanghai government unveiled 10 preferential policies to encourage foreign investment and participation in the region’s business activities. Months later, Zhou accompanied Zhu Rongji on an official visit to the US. Their first stop was New York, where they were confronted with a pointed question from an American reporter on how to persuade foreigners to invest capital in the city.Zhou recalled how Zhu Rongji quickly replied off the cuff, vowing: “We will enforce relevant legislation to ensure the success of the development and opening-up, as well as safeguard the legitimate rights and interests of foreign investors.”Zhou recalled being impressed with the rapid answer.“Upon our return to China, we plunged straight into research work,” Zhou told the South China Morning Post on Wednesday. “Within two months … nine sets of regulations governing Pudong’s development and opening-up were released to the world simultaneously in Chinese, English and Japanese.”Turning an ambitious vision into action, Zhu Rongji helped “draw people and enterprises from near and far”, added Zhou, who was a deputy governor of Pudong from 2000 to 2008.And today, despite 36 years passing since the former leader helped set Pudong’s transformation in motion, “images of that time remain vividly etched in my memory”, Zhou said.Additional reporting by Emma Ma