Soon after his return, Lu was tasked with helping to establish the Chinese Academy of Sciences' Institute of Automation, later being named its deputy director. At the institute, he took part in the planning and design work for the country's sounding rockets－one- or two-stage solid-propellant rockets used for probing the upper atmosphere and for space research－and satellites. He also led the research and development of inertial navigation technology in China.

From 1978 to 1983, Lu was director of the Beijing Institute of Aerospace Control Devices and also chief engineer at the ministry of astronautics.

Under his guidance, many achievements were made in research on inertial navigation and control technologies, laying a solid foundation for the development of new carrier rockets and spacecraft.

Lu joined the CPC in 1982.

His academic accomplishments led to him being elected as an academician of the Chinese Academy of Sciences in 1980, an academician of the International Academy of Astronautics in 1985 and an academician of the Chinese Academy of Engineering in 1994.

He is currently a senior adviser to China Aerospace Science and Technology Corp and China Aerospace Science and Industry Corp, two leading space contractors.