Yu Guangyuang, the economist who inspired Deng Xiaoping's reforms

Yu Guangyuan, a renowned economist who helped late paramount leader Deng Xiaoping launch his market reforms in late 1970s, died yesterday. He was 98.

Yu, who also once advised liberal former party chiefs Hu Yaobang and Zhao Ziyang , co-wrote a keynote speech delivered by Deng at a crucial party meeting in 1978. Deng's speech to the Third Plenum of the Communist Party's 11th Central Committee that year is seen as heralding the era of market reform and openness. The plenum is now remembered as a watershed in modern Chinese political history.

"Yu was one of the most liberal party officials and influential economists in the late 1970s and 1980s," said political affairs analyst Chen Ziming .

Chen said Yu's would also be remembered for proposing to the leadership that it reverse its verdict on the mass protests in Tiananmen Square in 1976.

Yu made his proposal in an important internal meeting of the party's Central Committee in 1978, suggesting the leadership reconsider their verdict on the so-called April 5 Tiananmen incident, which was held in memory of Deng's patron, the late premier Zhou Enlai , but turned into a protest against the extreme leftist rule of the "Gang of Four".

Deng was accused of masterminding the protest and was ousted by the Gang of Four, who were later purged themselves.