After the founding of the People's Republic in 1949, Gu became the Party Secretary and Mayor of
Jinan, the capital of Shandong, as well as
Political Commissar of the
Jinan Military Region. In February 1952 he was named Deputy Party Secretary and propaganda chief of
Shanghai. During his service as Vice Director of the Economic Commission, Gu was assigned in 1964 to lead the Third Front Construction Support and Examination
Small Group. This small group was tasked with providing resources for the
Third Front campaign to develop basic industry and national defense industry in China's rugged interior in an effort to prepare for potential United States or Soviet invasion. Gu was later removed from his positions and suffered political persecution like many other leaders. He returned to work in 1973 as head of the
State Development and Planning Commission. In 1975, he was appointed a Vice-Premier under
Zhou Enlai, and led the State Construction Commission and the Import and Export Commission of the
State Council. On the trip Gu visited France, Belgium, Denmark, Switzerland, and West Germany. Deng tasked Gu with making a detailed investigation, emphasizing that the delegation should learn from the advanced experience of capitalism. On returning to China, the Gu delegation reported to the Chinese Communist Party Politburo and strongly influenced subsequent policy to open towards foreign technology. He became a member of the Central Secretariat in 1980, and State Councilor in May 1982. As one of
Deng Xiaoping's chief aides in charge of economic management, he played a major role in implementing Deng's
reform and opening up and China's opening to the world. He was a key figure in the creation of
Shenzhen, China's first
Special Economic Zone. In 1988, Gu became a vice-chairman of the
Chinese People's Political Consultative Conference, a mostly ceremonial post. He retired in 1993, and left public life. Gu Mu died on November 6, 2009, at the age of 95. He was officially eulogized as a "long-tested and loyal warrior of the Communist cause, a proletariat revolutionary, an outstanding leader in the field of economic development". Top Chinese leaders, including
Hu Jintao and
Jiang Zemin attended his funeral. ==Family==