China unveils new measures to boost urban renewal, eyes high-quality growth and stronger domestic demand

China on Monday announced a new round of measures to accelerate its urban renewal drive, aiming to improve city infrastructure, enhance urban functions, and boost high-quality development.

At a press conference held by the State Council Information Office, senior officials from the Ministry of Housing and Urban-Rural Development, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, and the National Financial Regulatory Administration outlined the country's evolving urban strategy. The campaign is expected to stimulate investment and consumer spending, helping to further expand domestic demand.

With China's urbanization rate reaching 67 percent by the end of 2024 – equivalent to 940 million urban residents – the focus has shifted from large-scale expansion to upgrading existing city spaces and optimizing new developments. Officials said this marks a new phase in China's urban growth, centered on improving quality and resilience.

By the end of last year, China had launched renovation projects in 280,000 old residential communities, benefiting around 48 million households, or more than 120 million people.

To support the next stage of the campaign, authorities have introduced a national roadmap for urban renewal that sets out clear goals and timelines. Investments will be channeled into upgrading city infrastructure, improving public services, and enhancing urban safety and resilience.

A diversified, multi-level financing system is also being developed, with financial institutions rolling out tailored lending products and services to back renewal efforts. The financial regulator is drafting dedicated loan management rules to ensure steady and targeted funding for key projects.

Qin Haixiang, vice minister of housing and urban-rural development, said the urban renewal initiative is not only vital for improving city life but also plays an important role in boosting China's long-term economic vitality.