Urban Renewal | China’s Urban Transformation Pathway Seen Through the Lens of New Urban Infrastructure Development

One, Urban Renewal in the New Era

In October 2025, the Ministry of Housing and Urban-Rural Development and eight other departments jointly issued the "Action Plan for Implementing the Opinions of the General Office of the CPC Central Committee and the General Office of the State Council on Promoting the Construction of New Urban Infrastructure and Building Resilient Cities (2025–2027)," which clearly states: Driven by digitalization, networking, and intelligent technologies, we will promote a systematic upgrade of urban infrastructure. The release of this document marks the official entry of China’s urban development into... A new stage that equally emphasizes “improving the quality of existing stock” and “optimizing incremental growth.”

Currently, China's urbanization rate has exceeded. At the critical threshold of 60%, the urban expansion model is gradually reaching the limits of resource and environmental carrying capacity. Urban ills such as traffic congestion, environmental pollution, and imbalances between supply and demand for public services are becoming increasingly prominent. The spatial fragmentation and ecological degradation caused by traditional, extensive development patterns are compelling urban development models to shift from “extensive expansion” to “intensive enhancement.”

Against this backdrop, urban renewal is not merely a physical process of spatial reconstruction; rather, it has become a crucial initiative for promoting high-quality urban development and facilitating the transformation of local economic drivers in the new era. It represents a systematic endeavor to overcome developmental challenges and achieve sustainable transformation. There is an urgent need for us to break through the conventional limitations of traditional urban planning, adopt a broader perspective and higher-level understanding of urban renewal, and develop new theoretical paradigms that are responsive to the practical demands of urban renewal initiatives.

II. Evolution and Integration of the Policy System

Since Since the 14th Five-Year Plan explicitly proposed implementing urban renewal initiatives, policies, regulations, and models related to urban renewal have emerged one after another. At the national level, a multi-dimensional, full-lifecycle policy framework has been established around urban renewal, gradually shaping a governance logic characterized by “planning-led—specialized breakthroughs—technology-driven empowerment.”

(1) Top-level Design and Planning System

In July 2025, the Ministry of Housing and Urban-Rural Development issued the "Guidelines for Preparing Urban Renewal Plans," establishing an implementation approach of "specialized planning—district-level planning—project implementation plans." The guidelines emphasize adopting a systematic mindset to coordinate spatial layout, functional optimization, and risk prevention and control.

The 2025 Government Work Report proposes “continuously advancing urban renewal,” integrating the renovation of old residential communities, the protection of historical and cultural heritage, and sponge city development into a unified framework. This will help shift urban renewal from “fragmented patchwork” to “holistic reshaping.”

(2) Specialized Efforts Guided by People’s Livelihood Needs

Renovation of Old Residential Communities: Since Since the State Council issued guiding opinions in 2020, a total of 280,000 residential communities nationwide have been renovated, benefiting over 120 million people. In 2025, the Minister of Housing and Urban-Rural Development explicitly stated that all old residential communities built before 2000 will be included in the renovation scope, with a particular focus on age-friendly design, barrier-free facilities, and the development of smart residential areas.

Historical and Cultural Preservation: During the 14th Five-Year Plan period, we will carry out rescue and preservation efforts for 143 nationally renowned historical and cultural cities and 8,155 traditional villages. We will explore new models for the revitalization and adaptive reuse of historic buildings through the approach of “using to promote preservation,” such as transforming industrial heritage sites into cultural and creative parks and integrating tourism and leisure functions into old urban districts.

(3) Technology Empowerment and Resilience Enhancement

Sponge City Construction: Since The pilot program was launched in 2015, and 90 cities have adopted a “infiltration, detention, storage, purification, utilization, and drainage” system to achieve the resourceful use of rainwater and effectively mitigate flood risks. In 2025, the Action Plan further proposes promoting the development of smart multifunctional poles and urban cloud platforms, thereby enhancing the dynamic sensing and intelligent response capabilities of infrastructure.

Resilient City Development: With Guided by the nine-department plan, we will promote the intelligent upgrading of municipal infrastructure and the construction of vehicle-road coordination systems, building a “city lifeline” safety project covering areas such as water supply, power supply, and gas supply, thereby enhancing our resilience to extreme events.

III. Paradigm Reconstruction of Urban Renewal

The evolution of the current policy framework reflects three major shifts:

One is from From “scale expansion” to “quality first”—that is, by tapping into the potential of existing spaces and activating existing assets, we will promote intensive land use and resource recycling.

Second, from From “single-function restoration” to “building systemic resilience”—that is, using digital technology as the connecting link to break down data silos across infrastructure, public services, and ecosystems, thereby achieving holistic optimization of urban operations.

Third, from From “government-led” to “multi-stakeholder co-governance.” This involves innovating investment and financing mechanisms, encouraging models such as REITs and market-oriented operations, stimulating the vitality of market entities, and fostering a collaborative and shared renewal ecosystem.

IV. Future Outlook: Moving Toward A “people-centered” urban paradigm

At its core, urban renewal is about responding to people’s aspirations for a better life. With the implementation of the “Action Plan,” China’s cities will accelerate their journey toward... A smart, resilient urban form that is “perceptible, responsive, and evolutionary.” In this process, it is essential to strike a balance among protection and development, efficiency and equity, and short-term benefits and long-term value—using painstaking, meticulous effort to weave a splendid tapestry of urban renewal and contribute a Chinese solution to the governance of global megacities.