At a recent press conference hosted by the State Council Information Office, Liu Sushe, the Deputy Director of the National Development and Reform Commission (NDRC), shared insights on a comprehensive set of new policies designed to significantly boost the economy and enhance urban infrastructure. He pointed out that China’s urban development is at a critical juncture where both new construction and the renewal of existing infrastructure are essential. This indicates that urban renovation will be a key focus in the near future.

When a reporter asked Liu about support policies specifically aimed at urban renewal, especially regarding the considerable funding required for projects like renovating old residential areas and upgrading underground utilities, Liu acknowledged the country’s pressing needs. He mentioned that over the next five years, China will require nearly 600,000 kilometers of upgrades to urban gas, water supply, and heating pipelines, amounting to an estimated 4 trillion yuan in investment.

The overarching policy package underscores the imperative of prioritizing urban renewal initiatives. Liu explained that the NDRC intends to coordinate various funding sources and prepare lists of relevant projects and investment plans to expedite the launch of qualifying projects. There will also be a concerted effort to establish a sustainable framework for upgrading urban infrastructure that leverages the vast potential of new urbanization and drives economic growth.

Looking ahead, Liu outlined several key steps:

First, there will be a systematic approach to executing urban renewal tasks, prioritizing projects based on urgency. Immediate measures will focus on addressing safety hazards, while mid-term projects will target the replacement of aging facilities. Long-term efforts will aim to enhance overall functionality. Priority will be given to essential services and public safety, including the upgrading of urban pipelines, improving living conditions in older residential areas, and bolstering transport safety.

Second, during the upcoming budget cycle, key urban renewal projects will receive prioritized support. Given the current high demand for funding underground utilities, many initiatives are primed for advancement. For the 2023-2024 budget, the NDRC has earmarked over 470 billion yuan specifically for urban renewal efforts, which include enhancing gas and water systems and upgrading outdated neighborhoods. The government aims to maintain its focus on urban renewal investments, particularly in densely populated cities and urban centers, ensuring the progression of ongoing projects while addressing challenges like aging gas networks and urban flooding.

Lastly, Liu stressed the significance of exploring innovative financing models for urban renewal. With high potential for market involvement in these projects, relying solely on public funding will not suffice. Therefore, developing a diversified funding mechanism that attracts private capital is crucial. The NDRC is committed to improving funding efficiencies in market-oriented sectors and plans to pursue collaborative models between government and the private sector, such as Public-Private Partnerships (PPP) and infrastructure-focused Real Estate Investment Trusts (REITs), to promote a sustainable, broadly participatory approach to urban renewal.