On June 4, the results of the 2025 central government financial support for the implementation of urban renewal actions were announced, with Beijing and 19 other cities on the list. This list, jointly released by the Ministry of Finance and the Ministry of Housing and Urban-Rural Development, marks the acceleration of a new round of urban renewal. Not long ago, the General Office of the CPC Central Committee and the General Office of the State Council issued the Opinions on Continuously Advancing Urban Renewal Actions, outlining a roadmap for this initiative. It proposes that by 2030, the living environment will be significantly improved, the economic landscape will be more diverse, cultural heritage will be effectively protected, urban characteristics will be more prominent, and cities will become spaces for a high-quality life for the people.
With the policy now being implemented, how will urban renewal be advanced? How can old neighborhoods be revitalized? Can the renewal model be sustained?
Why renovate?
Hundreds of millions live in aging spaces urgently in need of renewal.
Over the past few decades, urban construction has advanced rapidly, with skyscrapers rising and commercial housing flourishing. But behind the acceleration of modernization, many residential communities built in the last century have gradually fallen behind, struggling to keep up with residents’ current lifestyles.
What counts as “old”? According to standards jointly issued by multiple departments, any residential community built before the year 2000 that suffers from serious neglect and disrepair, lacks proper infrastructure, and has mismatched functionality can be classified as an old community. These neighborhoods typically lack elevators, parking spaces, green areas, and property management. Seniors struggle with stairs, vehicles have limited access, public space is absent, and activity areas are scarce-not only is it “old to live in,” but also “hard to live in.”
Data shows that in 2024, 56,000 urban old residential communities began renovation work. Over 50,000 kilometers of aging pipelines within these communities were upgraded, more than 25,000 elevators were newly installed, and over 500,000 parking spaces were added.
At this year's National People's Congress and Chinese People's Political Consultative Conference (Two Sessions), Minister of Housing and Urban-Rural Development Ni Hong stated that all urban old residential communities built before 2000 will be included in the scope of urban renewal, promoting renovations tailored to local conditions.
Yang Baojun, President of the Urban Planning Society of China, who was deeply involved in drafting the Opinions, stated in an interview with CCTV’s News 1+1 that urban renewal is different from new area development. The latter already has mature construction experience and pathways, whereas the former is a complex, systematic project that requires continuous innovation through exploration.
Through policy documents, the central government has made a systematic deployment of urban renewal at key moments, clarifying fundamental principles, key tasks, and support mechanisms-transforming proven experiences into institutional arrangements while also addressing deep-rooted problems revealed in practice.
From “building new” to “renewing,” marks a profound shift in urban governance logic: from incremental expansion to stock optimization, from singular construction activities to multi-party collaborative governance, and from physical space transformation to lifestyle reconstruction.
For residents, the meaning of urban renewal is more concrete and tangible. It could be an elevator they can ride, a pocket park with trees and benches, a clean and unblocked sewer, a convenient corner store - or even an opportunity to rebuild neighborhood connections. It is closely tied to people’s real expectations for a “better life.”
Where does the money come from?
Renovating old residential communities often costs tens of millions or even hundreds of millions-so where does the funding come from?
Yang Baojun stated that urban renewal is a long-term and continuous process. Relying solely on government finances is not sufficient; it’s also necessary to attract more private capital through institutional innovation.
In recent years, many regions have actively explored sustainable urban renewal financing models led by the government, operated by the market, and participated in by the whole society. The government contributes part of the funding as a catalyst to attract private investment into the projects, forming a collaborative approach of “government setting the stage, enterprises performing, and residents participating.”
In Beijing, funding for redevelopment comes from various sources, including government subsidies, contributions from property-owning entities, funds raised through public housing sales, and self-funding by residents. Under the “application-based relocation” mechanism, the government covers residents’ relocation compensation, while private capital handles space renovation and subsequent operations, recovering costs through rental income.
In Shandong, Jinan City has explored the establishment of an urban renewal fund, seeking credit support from financial institutions and encouraging participation from central state-owned enterprises and private capital. In the High-tech Zone, the old playground at Shuntai Plaza was repurposed through a multi-level land use model of “building a park above, and parking + commercial space below.” This created over 1,000 new parking spots, achieved a 95% commercial occupancy rate, and attracted over 6,000 daily visitors. The investment is expected to break even within 20 years.
The Blue Series Park renewal project in Wuxi, Jiangsu, adopts a government-guided “private enterprise investment + operation” model. Private companies fund and carry out the overall renovation of the park, sign long-term lease agreements with the original property owners, and achieve a win-win outcome through a profit model of “rent + property services + value-added services + revenue sharing.”
In Shenzhen, Guangdong, the Women and Children's Tower renovation project includes spaces such as a children’s exploration museum, a one-stop child development center, and a mother-child theater. It innovates the public service financing model by diversifying income sources through self-operated, joint-operated, and co-operated revenue, along with property rental, enabling mutual reinforcement between public welfare and commercial operations.
How to renovate?
From the “facade” to the “interior,” from “renovation” to “renewal.”
On May 20, at a press conference, Qin Haixiang, Vice Minister of Housing and Urban-Rural Development, stated that this round of urban renewal will focus on four major goals: “good housing, good neighborhoods, good communities, and good urban areas,” emphasizing the elimination of superficial or image-oriented projects.
Renewal must start from within. On one hand, it focuses on improving the environment and appearance of streets and alleys; on the other hand, substantial effort is devoted to upgrading basic infrastructure such as underground power lines, rainwater and sewage separation, and gas system improvements.
“In the past, when the sewer was blocked, no one took care of it. Now it’s not only cleared, but the pavement has also been redone,” said Auntie Xiao, who has lived in Beijing’s Yaojiang Hutong for decades. Previously, sewage overflow and rainwater backflow often occurred due to clogged drains in the courtyard. The renovation team developed a method of “reserved connection points + self-installation,” extending sewage outlets to the doorstep of each household. Residents only needed to purchase a ready-made three-piece set, plug it in, and it was ready to use.
When the “interior” is solid, the “exterior” can shine. Compared to the once chaotic courtyard, today’s Yaojiang Hutong features cafés, flower shops, and shared activity rooms, while still preserving 12 original households and decades of neighborly ties. Originally built in 1884, this old alley has rekindled the warmth of daily life through renewal.
In the Zhonghai Daji Alley project in Beijing, while advancing infrastructure works such as underground power lines and integrated communications, the design team also preserved the historical architectural context. The construction adhered to a “rebuild as original” principle, using traditional techniques-such as grey bricks, clay tiles, and wooden mortise-and-tenon joints-to restore the architectural style of the Ming and Qing dynasties as faithfully as possible.
Renewal focuses not only on preserving appearance but also on “cultural revitalization.” Protected buildings like the former residence of Kang Youwei and Courtyard No. 29 on Mishi Hutong were digitally modeled and restored to their original form, then opened to the public as museums. The project’s IP mascot “Daji Cat” was also embedded into installations throughout the neighborhood, creating a stronger connection with everyday life. On its opening day, the area attracted over 190,000 visitors, with more than 50% of the first wave of shops being custom-designed-turning it into a new magnet for cultural and lifestyle integration.
Who decides?
What’s being transformed is not just physical space, but also the way governance is carried out.
It’s not only about exploring how to renovate, but also who leads the process and who participates. In the past, urban renewal was mostly led unilaterally by the government. Now, the emphasis is on “multi-party collaboration”: subdistrict offices, design institutes, platform companies, and construction teams work in parallel-coordinating from ground to underground, and from early-stage consultations to long-term operations-advancing step by step in a “patchwork” style.
In the renewal of Beijing’s hutongs, “deliberation mechanism” has become a key term. Project teams must go through multiple rounds of communication with residents-from the placement of trash bins to the style of canopies, from window materials to the layout of greenery-almost every detail must be agreed upon. “Some opinions were argued into existence,” admitted Liang Shan, project lead for Yaojiang Hutong, “but it’s precisely these debates that got people truly involved, and more willing to maintain the results.”
Yaojiang Hutong offers a model: the government provides municipal support, a platform company leads the renovation, and a private operator introduces mutually agreed-upon businesses. Through fostering a “new type of neighborhood relationship,” the project achieved both increased rental income and higher public satisfaction. A clearer coordination mechanism among the government, platform company, and private operator is key to avoiding real-world issues such as “fragmented management” and “unclear responsibilities.”
Zhu Xiaodi pointed out: “What we need is not just investors, but curators-ideally architect-type figures who understand design, operations, and urban context, who can evaluate cost-benefit, grasp the right tone and rhythm, and build gentle connections between space and people.”
Urban renewal must effectively address residents’ everyday needs. Fang Hongmei, landscape director of the Zhonghai Daji Alley urban renewal project, stated: “During the early design phase, we conducted a comprehensive survey of nearby residents’ needs-basketball courts, leisure areas, underground theaters, gathering spaces-all are part of daily life.”
In the end, the project added a 12,000-square-meter green space within Beijing’s Second Ring Road, featuring garden areas like a “flexible theater” and a “forest terrace,” while also providing a pleasant spot for nearby hutong residents to relax after meals.
Shanghai's Jinniu Huayuan old residential community explored a “three-in-one” model during its renovation: area-wide enhancement, comprehensive element upgrades, and large-scale elevator installation-with unified design and coordinated implementation across the entire block.
Some ground-floor residents initially opposed the elevator addition, fearing it would affect lighting and privacy. Community coordinators visited households one by one, eventually reaching an agreement through a plan involving slight adjustments to elevator placement and reductions in property fees. Full-building contracts were signed, and renovations such as roof waterproofing, exterior wall insulation, and smart access systems were carried out simultaneously.
Residents participated throughout the entire process-from design to construction oversight-which improved satisfaction and strengthened their capacity for long-term self-governance.
What should it become?
The ultimate benchmark of urban renewal is whether people want to stay.
Whether an old neighborhood can truly be revitalized depends on one key question: Can it sustain long-term operation?
Speaking about replicable lessons from the renovation of Beijing’s hutongs, Zhu Xiaodi noted that while the names differ across the country-hutong in Beijing, nongtang in Shanghai, xiaoxiang in Chengdu-the spatial logic is the same: they represent the final stretch outside the residential unit.
“Public space is the key variable in renewal,” Zhu said. “The success of a project doesn’t just depend on architectural design-it depends on whether residents are willing to stay.”
In this renewal experiment, old neighborhoods often reject the path of becoming trendy “internet-famous streets.” Instead, they embrace a low-density approach that is “small and refined, soft and slow.”
The renovation of Yulin East Road in Chengdu introduced the concept of “golden corners and silver edges,” focusing on under-bridge spaces, street corners, and architectural gaps-urban “leftover spaces.” These idle areas were transformed into functional zones such as seating areas and market bookstalls, allowing citizens to “encounter scenery” even during daily commutes. Underground spaces were also fully utilized, redesigned into multifunctional areas that combine parking, storage, and cultural exhibitions, and brought in new types of businesses like 24-hour urban living rooms and youth cultural spaces.
High-quality businesses are the vibrant lifeblood of urban renewal. In Beijing’s Lanman Hutong, Zhang Shuang, who oversees tenant curation and operations, explained: “Profit isn’t our primary goal-we focus more on whether the business aligns with the neighborhood.” The team evaluates whether merchants understand the atmosphere of the old city, possess a sense of public responsibility, and can engage in positive interactions with residents.
Yang Na, who leads project design coordination, emphasized: “We can’t blindly pursue bustle. The renewal process must respect residents’ pace and the overall character of the neighborhood. It’s about continuously bringing vitality to the entire area over the long term.”
“This place doesn’t feel like a commercial district-it feels like a community. Greeting neighbors and helping tourists find their way is more important than sales,” said dessert shop owner Wang Binggan. “I grew up here as a child, and now I’ve come back to open my shop. Every day feels especially joyful.”
Wen Ting, curator of Yaojiang Hutong, emphasizes a “long-term mindset.” “We’re not simply partnering for spatial renovation or running new community businesses-we’re co-building a new community and creating an urban renewal ecosystem.” Urban renewal should not fall into the formula of “landscape project + commercial grafting,” but instead establish a new mechanism that is usable, maintainable, and capable of growth.
Urban renewal is science in action. As a complex system involving multiple stakeholders and intertwined interests, it has no ready-made answers-it must be tested and refined within real neighborhoods and daily life. Only through continuous practice and iterative improvement can clear collaboration mechanisms and governance boundaries be established.
By bringing together residents, local authorities, and operators, building consensus, and promoting co-creation, urban renewal can truly advance toward a future that is high-quality and sustainable.
Source from : Xingdong Wang(Chief Editor), Weize Zhang, Xiao Yang, Jing Xu (Journalists), CCTV News, June. 11th, 2025, https://content-static.cctvnews.cctv.com/snow-book/index.html?item_id=15267882202693175956&toc_style_id=feeds_default&track_id=BEE18B14-0AF8-44F6-A53E-D819E1CDDB21_771324547562&share_to=copy_url
Translated By Jingyuan Zhang
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