One of the recommendations made in October by the Communist Party of China Central Committee for formulating the 15th Five-Year Plan for National Economic and Social Development (2026-30) has attracted widespread attention among the Chinese public: "We should continue to tap the full potential of cities, make a strong push to advance urban renewal and build people-centered modern cities that are innovative, livable, beautiful, resilient, culturally rich and smart." The reason for the buzz is the boom in urban infrastructure construction the recommendations are expected to bring and the resulting economic development.
Urban renewal is a core strategy in China's ongoing urbanization process. It transcends mere physical transformation, representing a comprehensive process essential for building sustainable cities of the future.
China's urban population reached 67 percent of the total at the end of 2024, with urban development shifting from the stage of large-scale incremental expansion to the stage of improving the quality and efficiency of existing resources. But many Chinese cities, especially those that have expanded rapidly, are confronted with severe urban challenges, such as aging infrastructure, outdated water supply, drainage, gas and electricity networks, poor roads, and substandard living conditions. Old residential communities lack modern facilities, parking spaces, elevators and green spaces. Urban renewal aims to alleviate these problems, enhancing the carrying capacity of cities and making them more livable.
Urban renewal is also a crucial engine for stimulating domestic demand and promoting economic growth. Renewal projects will drive huge private investment in multiple industries such as construction, building materials, design and real estate, thus stimulating investment. In addition, by renovating old factories and neighborhoods, new business forms including cultural and creative industries, technology and tourism can be introduced to achieve industrial upgrading and cultivate new drivers of growth.
However, improving people's wellbeing and enhancing their sense of happiness and fulfillment are the core goals of urban renewal in China. Renovating or replacing dilapidated or old buildings, installing elevators and improving kitchen and bathroom facilities can directly enhance people's quality of life. In areas under renewal, elderly care, child care, medical care, education and community service facilities will be upgraded to improve public services. The optimization of community environments and the expansion of community spaces will lead to greater community cohesion and social harmony.
