Yesterday came the news that China-watchers have been anticipating for some time. Beijing's economic czar, Mr Zhu Rongji, is to deliver the keynote address to the annual meeting of the Chinese parliament next month. This means only one thing: the 69-yearold reformer is about to be appointed prime minister of China in succession to Mr Li Peng, who is required by the constitution to step down at the end of his second five-year term in March. The move had been expected. Indeed, if it had not come and someone else had got the job, Chinese stocks would have taken a hammering around the world and the cause of reform would have been dealt a serious blow. The importance of Mr Zhu's appointment was expressed by one China business consultant who said: "It would be inconceivable for the continuation of reform to occur in Zhu's absence."
Called "an apparatchik with attitude" by Fortune magazine, the urbane Mr Zhu has impressed foreign audiences, particularly at the World Bank conference in Hong Kong in September, with his fluency in English, his grasp of detail, and his habit of setting aside the prepared text so beloved of communist leaders. Mr Zhu has a reputation for efficiency. As mayor of Shanghai 10 years ago, he earned the nick-name "One-chop Zhu" after dispensing with all but one of the official stamps (or chops) needed by foreign companies to make investments in the city.
Following the financial turmoil of the last six months which brought down the Asian tigers, he appears from recent statements to be moving away from favouring South Korea-style industrial chaebols (conglomerates) for China's heavy industry to the idea of more open, deregulated markets in the future. As China's chief policy-maker, Mr Zhu has set a target of three years to revive most loss-making state-owned enterprises and commit Beijing to major reform of the country's over-extended banking system. As prime minister he will be able to oversee China's economic and financial transformation well into the 21st century. The annual session of parliament, or the National People's Congress, begins on March 5th. The government work report on opening day is traditionally presented by the prime minister. A party source told Reuters: "Zhu Rongji will be the new premier so he will make the work report and not Li Peng."
Between 1993 and 1995, Mr Zhu served as one of six vice premiers and as governor of the People's Bank of China. Since 1995, he has kept the positions of vice premier. A lover of Peking opera, he was virtually assured of becoming prime minister after moving up from fifth to third in the Communist Party's seven-member Politburo Standing Committee at last September's party congress. Chinese television has recently shown Mr Zhu and Mr Li jointly consulting parliamentary delegates about the contents of the work report. As prime minister one of his main tasks will be dealing with the problem of unemployment which is causing unrest among workers, especially in the industrialised north eastern province.