Real Estate 2025

CHINA Trends and Developments Contributed by: Zheyuan Jin, Xiang Mao, Lingyue Sun and Yi Wu, Merits & Tree Law Offices

China’s New Urbanisation Strategy: A Path Towards Sustainable Development In recent years, China has embarked on a trans - formative urbanisation strategy aimed at foster - ing sustainable development, improving the quality of life for its citizens, and addressing the challenges posed by rapid urban growth. This new approach, often referred to as “people- centred urbanisation,” represents a significant shift from the previous model, which prioritised economic growth and infrastructure expansion at the expense of social and environmental con - siderations. In June 2024, China’s State Council released the Five-Year Action Plan for Deepening People- Centered New Urbanization Strategy, outlining a comprehensive strategy to promote sustain - able and inclusive urban development. The plan focuses on integrating rural migrants into cities by improving access to public services, such as education, healthcare and housing, while addressing urban-rural disparities. It highlights green and low-carbon development, aiming to reduce pollution and enhance resource efficien - cy through smart city initiatives and improved urban planning. Additionally, the plan encour - ages balanced regional growth by supporting smaller cities and optimising urban spatial dis - tribution. This initiative reflects China’s commit - ment to creating liveable, equitable and environ - mentally sustainable cities for all. This is a critical step, as millions of rural resi - dents have moved to cities in search of better opportunities, yet many still face barriers to full social and economic inclusion. By addressing these disparities, China aims to reduce inequal - ity and promote social cohesion. Another key aspect of the strategy is the promo - tion of sustainable urban development. Recog -

nising the environmental challenges posed by rapid urbanisation, such as air pollution, water scarcity and waste management, the govern - ment has introduced measures to encourage green and low-carbon cities. This includes investing in renewable energy, improving public transportation systems, and implementing strict - er environmental regulations. Additionally, the strategy emphasises the preservation of cultural heritage and the creation of more green spaces, ensuring that urbanisation does not come at the cost of environmental degradation or the loss of cultural identity. The new urbanisation strategy also focuses on optimising the spatial distribution of cities. Instead of concentrating development in a few megacities, the government is encouraging the growth of smaller and medium-sized cities, particularly in the central and western regions. This approach aims to reduce the pressure on overcrowded metropolitan areas while promot - ing balanced regional development. By fostering the growth of these smaller cities, China hopes to create more opportunities for economic diver - sification and reduce regional disparities. Urban Renewal Movement in China China’s “urban renewal” is a broad initiative aimed at revitalising cities by improving living conditions, enhancing urban functionality, and promoting sustainable development. It encom - passes three key components: • the renovation of old residential neighbour - hoods; • the transformation of urban villages; and • comprehensive urban renewal projects. Renovation of old residential neighbourhoods The movement started in 2020, the year in which the Guiding Opinions on Comprehensively Pro -

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