Zhu Rongji legacy highlighted amid China's economic transition

Economist Noah Smith has highlighted the legacy of Zhu Rongji, who passed away at age 97. Described as a hero of China’s economic transformation, Zhu managed macroeconomic and microeconomic policies between 1991 and 2003. His contributions included accelerating the privatization of state-owned enterprises, stabilizing Chinese banks during the 1997 Asian financial crisis, and implementing significant tax reforms.

In contrast to the high growth rates seen during Zhu’s tenure, China is currently facing a challenging economic period. Official statistics show growth has slowed to 5%, though some independent estimates suggest it may be as low as 2% or 3%.

To address these challenges, President Xi Jinping is attempting to shift the economy toward innovation and efficiency. This transition includes the creation of a national research and development system and the implementation of extensive industrial subsidies intended to coordinate innovation across both state-funded laboratories and private companies.