Editor's note: Xin Ge is a research fellow at the Institute of Public Policy and Governance, Shanghai University of Finance and Economics (SUFE), and a chair associate professor at the School of Public Administration and Policy, SUFE. The article reflects the author's opinions and not necessarily the views of CGTN.

At the Central Urban Work Conference, held in Beijing from Monday to Tuesday, Chinese President Xi Jinping, also general secretary of the Communist Party of China Central Committee and chairman of the Central Military Commission, delivered a pivotal speech emphasizing the need to "focus on the intrinsic development of cities and take urban renewal as an important lever" to vigorously promote the optimization of urban structures, the transformation of development drivers and the improvement of urban quality.

This crucial statement not only provides direction for urban development in the new era but also offers fundamental guidance for understanding the profound significance of urban renewal. Far from being simple demolition and large-scale reconstruction, urban renewal is a comprehensive undertaking that merges spatial regeneration, infrastructure modernization and social well-being. With unprecedented focus, China is leveraging urban renewal to steer its cities away from sprawling expansion and toward intensive, sustainable growth.

From industrial relics to innovation hubs

At its core, urban renewal aims to deeply excavate and reshape the value of existing spaces, revitalizing dormant assets to provide physical support for industrial transformation and upgrading. Previously inefficient land, a legacy of extensive development models, is now being reanimated through renovation.

The transformation of Beijing's Shougang Park is a case in point. The century-old steel mill, once a symbol of heavy industry, was reimagined first as an Olympic venue and now as a burgeoning hub for the sci-fi and tech industries. It has attracted tech giants like Tencent and Douyin, generating over 10 billion yuan (around $1.4 billion) in annual output. This conversion of a "concrete jungle" into fertile ground for new economic engines demonstrates a powerful model: creating premium space for emerging sectors without razing the past. This shift is also forcing a strategic evolution in the real estate sector, nudging it from a "demolish-and-build" model toward becoming a sophisticated operator and service provider focused on organic regeneration and micro-transformations.

This renewal also refines the urban fabric, fostering a seamless integration of industry, housing and commerce to boost economic density. In Guangzhou, the revitalization of Yongqing Fang preserved the historic charm of old Lingnan architecture while introducing new commercial formats like creative studios and cultural heritage experiences. The once-declining neighborhood is now a premier destination for cultural tourism, increasing the district's commercial value by an estimated 50 percent and proving that historical preservation and economic dynamism can be mutually reinforcing.

Fortifying the infrastructure foundations for future growth

Infrastructure is the lifeline of any modern city, yet many of China's urban centers are grappling with aging systems, especially in critical areas like subterranean pipelines and flood defenses. Urban renewal is being deployed as a crucial tool to remedy these vulnerabilities and enhance urban resilience.

Shenzhen's "Sponge City" initiative, for example, involved a systematic overhaul of its drainage infrastructure. In 2023 alone, this program successfully mitigated over 1 billion yuan in potential losses from waterlogging, showcasing a dramatic improvement in the city's ability to handle extreme weather. Beyond retrofitting, this renewal wave is embedding intelligence into the core of urban infrastructure. The integration of 5G, the Internet of Things (IoT) and big data is making smart transportation and intelligent water management the new standard. The Hangzhou Asian Games Village area, through the construction of integrated utility tunnels and smart transportation systems, not only increased its economic carrying capacity but also spurred a 20-percent rise in surrounding land values, highlighting the potent economic effects of next-generation infrastructure.

Notably, infrastructure renewal has a significant investment-driving effect. From 2023 to 2024, the central government has allocated 470 billion yuan for urban infrastructure upgrades. Over the next five years, renovations of old residential communities and municipal systems are projected to catalyze 2.35 trillion yuan in investment, injecting significant new momentum into the national economy.

A fusion of livelihood, culture and commerce

The ultimate goal of urban renewal is to enhance residents' quality of life, achieving a synergy between public well-being and economic development. It directly addresses daily needs, from installing elevators in older apartment buildings to upgrading community services, which in turn stimulates localized consumption in home goods and neighborhood commerce.

Crucially, this renewal preserves urban memory while creating new economic opportunities. Historical districts are being revitalized through "micro-renovations" that protect cultural heritage while cultivating new consumption scenes like night markets and "Citywalk" tours. Chengdu's Mengzhuiwan, transformed from a defunct industrial zone into a vibrant arts and culture district, now draws over 3 million visitors annually and has driven a 40-percent increase in local commercial rents. Furthermore, urban renewal creates numerous employment opportunities and provides low-cost entrepreneurial spaces for small and micro businesses and cultural and creative workers, stimulating the intrinsic vitality of the urban economy.

In redefining urban renewal as a strategic priority, China is moving beyond mere construction. It is activating dormant assets, cultivating new industries and building economic resilience from the ground up. It is an essential path for driving the high-quality development of Chinese cities.