He held a number of other academic positions through 1991, when Zhu appointed him as director of the Shanghai Municipal Planning Commission, allegedly because he had remarked that he hated central planning.
Xu was Mayor of Shanghai from 1995-2001.[1]: 146 During his tenure, Shanghai's Pudong New Area developed rapidly.[1]: 146
However, Xu was demoted in 2001, to a far more obscure position as party chief of the Academy of Engineering in Beijing, apparently as the result of an internal party power struggles. Xu was replaced by Executive Vice-Mayor Chen Liangyu, one of Jiang's associates who was later convicted on charges of corruption.
In 2014, he was appointed to lead the advisory panel for the coordinated development of the Beijing-Tianjin-Hebei region.[1]: 146 Xu is Xi Xinping's lead advisor on the development of Xiong'an, as of at least 2023.[1]: 146