PremiershipZhu has a reputation for being a strong, strict administrator, intolerant of flunkeyism, nepotism, and a dilatory style of work. For his hard work ethic and general truthful and transparent attitude, he is generally considered one of the most popular Communist officials in mainland China.[citation needed]
With support from Jiang Zemin and Li Peng, then president and premier respectively, Zhu enacted tough macroeconomic control measures. Favoring healthy, sustainable development, Zhu expunged low-tech, duplicated projects and sectors that would result in "a bubble economy" and projects in transport, energy and agricultural sectors, averting violent market fluctuations. He focused on strengthening industry, agriculture and on continuing a moderately tight monetary policy. He also started a large privatization program which saw China's private sector grow massively.
President Jiang Zemin nominated Zhu for the position of the Premier of the State Council at the Ninth National People's Congress (NPC), who confirmed the nomination on 17 March 1998 at the NPC First Session. Zhu was re-elected as a member of the powerful Politburo Standing Committee, China's de facto central decision-making group, at the 15th CPC Central Committee in September 1997.
The 1990s were a difficult time for economic management, as unemployment soared in the cities, and the bureaucracy became increasingly tainted with corruption scandals. Zhu kept things on track in the difficult years of the late 1990s, so that China averaged growth of 9.7% a year over the two decades to 2000. Against the backdrop of the Asian financial crisis (and catastrophic domestic floods) mainland China's GDP still grew by 7.9% in the first nine months of 2002, beating the government's 7% target despite a global economic slowdown. This was achieved, partly, through active state intervention to stimulate demand through wage increases in the public sector, among other measures. China was one of the few economies in Asia that survived the crisis.
While foreign direct investment (FDI) worldwide halved in 2000, the flow of capital into mainland China rose by 10%. As global firms scrambled to avoid missing the China boom, FDI in China rose by 22.6% in 2002. While global trade stagnated, growing by one percent in 2002, mainland China's trade soared by 18% in the first nine months of 2002, with exports outstripping imports.
Despite the glowing growth statistics, Zhu tackled deep-seated structural problems: uneven development; inefficient state firms and a banking system mired in bad loans. Observers think there are few substantial disagreements over economic policy in the CPC; tensions focus on the pace of change. Zhu's economic philosophies had often triumphed over that of his colleagues, but it nevertheless resulted in a testy relationship with then-General Secretary Jiang Zemin.
The PRC leadership struggled to modernize State-owned enterprises (SOEs) without inducing massive urban unemployment. As millions lost their jobs as state firms close, Zhu demanded financial safety nets for unemployed workers, an important aim in a country of 1.3 billion. China needs 100 million new urban jobs in the next five years to absorb laid off workers and rural migrants; so far they have been achieving this aim due to high per capita GDP growth. Under the auspices of Zhu and Wen Jiabao (his top deputy and successor), the state tried to alleviate unemployment while promoting efficiency, by pumping tax revenues into the economy and maintaining consumer demand. Zhu has won acclaim domestically and internationally for steering the People's Republic of China into the World Trade Organization (WTO) in 2001.
Critics have charges that there is an oversupply of manufactured goods, driving down prices and profits while increasing the level of bad debt in the banking system. But so far demand for Chinese goods, domestically and abroad, is high enough to put those concerns to rest in the time being. Consumer spending is growing, boosted, in large part, due to longer workers' holidays.
Zhu's right-hand man, Vice Premier Wen Jiabao, oversaw regulations for the stock market and campaigned to develop poorer inland provinces to stem migration and regional resentment. Zhu, and his successor Wen, set limits[citation needed] for taxes imposed on farmers to protect them from high levies by corrupt officials. Well respected by ordinary Chinese citizens, Zhu also holds the respect of Western political and business leaders, who found him reassuring and credit him with clinching China's market-opening World Trade Organisation (WTO) accession,[2] which has brought foreign capital pouring into the country.
Zhu remained as Premier until the National People's Congress met in March 2003, when it approved his struggle to clinch trusted deputy Wen Jiabao as his successor. Wen was the only Zhu ally to appear on the nine-person Politburo Standing Committee. Like his fourth-generation colleague Hu Jintao, Wen's personal opinions are difficult to discern since he sticks very closely to his script. Unlike the frank, strong-willed Zhu, Wen, who has earned a reputation for being an equally competent manager, is known for his suppleness and discretion.[citation needed]
During the 2000 ROC presidential election in Taiwan, Zhu gave the warning "there will be no good ending for those involved in Taiwan independence". In his farewell speech to the National People's Congress, Zhu unintentionally referred to China and Taiwan as two "countries" before quickly correcting himself.[3] His stance on Taiwan during his time in office was always with the Party line.[citation needed] |