He was born in Shandong province and studied engineering at the Beijing Steel and Iron Institute. Luo joined the Communist Party of China in 1960.
Afterwards, he moved to East Germany and spent eight years working in steel plants. Upon returning to China, Luo continued to work in the steel industry and became Party chief of the central Henan Province in the 1980s.
Luo has developed a close relationship with Li Peng and is considered his protege.
Luo was appointed a state councillor in 1993 and became a member of the Politburo in 1998. Serving as the security chief, he implemented the "strike hard" anti-crime campaign, which has led to increased executions.