Administrative Law

From 'Three Olds Renovation' to 'Urban Renewal': Study of Legal Strategies for City Village Renovation Model Transformation — Guangzhou City as Example

11 MIN READ
ABSTRACT

Guangzhou's urban renewal policy has gone through six stages, each with distinctive historical characteristics. In the current new round of city village renovation, rule of law guarantee and supervision system improvement have become key topics.

Introduction

With rapid urbanization, city village renovation has become one of the key topics in China’s urban renewal. The policy transition from “Three Olds Renovation” to “Urban Renewal” reflects upgrading of urban governance concepts.

2008 saw Guangdong propose “Three Olds Renovation,” focusing on revitalizing stock land resources. While achieving notable results in promoting land intensification and economic growth, this policy also led to problems like pursuing economic benefits while ignoring public interests and ecological protection. “Urban Renewal” then emerged as a more comprehensive and sustainable policy.

Guangzhou has entered a new stage since 2019, particularly in 2023 with “government-led land preparation” and “净地出让” principles driving city village renovation.

I. Historical Evolution of Guangzhou Urban Renewal Policy

A. Initial Exploration Stage (1999): Establishment of City Village Renovation Leading Group; government-led demolition, environmental remediation; lacked clear legal basis.

B. Three Olds Renovation Stage (2009): Guangdong became first pilot province; formation of initial policy system; introduction of market mechanisms; began incorporating city village renovation into strategic framework.

C. Urban Renewal Development Stage (2015): Establishment of Urban Renewal Bureau; “1+3” policy system; shift from single “demolition and resettlement” to comprehensive development and management.

D. Accelerated Urban Renewal Stage (2020): “Fast approval, fast demolition, fast construction” strategy; policy rule of lawization and high-quality development promotion.

E. Enhanced Control Stage (2021): Shift from high-speed advancement to more controlled and detailed policy; emphasis on environmental protection, social stability, and rational use of public resources.

F. New Round City Village Renovation Stage (2023): “Government-led land preparation” and “依法征收,净地出让” new model; government role shifts from pure promoter to coordinator and supervisor.

II. Guangzhou City Village Renovation Models and Practice

A. Government-Led Renovation Model

Government directly promotes and implements renewal. Characterized by prominent administrative leadership. Case: Li Hua District Jin Hua Street Community renovation in 1980s.

B. Foreign Capital-Led Government Renovation Model

Government retains overall organizational structure but introduces foreign capital as funding source. Case: Li Wan Plaza renovation; foreign (especially Hong Kong) real estate development eventually dominated.

C. Government-Coordinated Model Without Developer Involvement

Government handles all renovation including site selection, mode determination, cost calculation, planning, land approval, and funding. Developers only complete affordable housing construction per land transfer contracts.

D. Government-Guided, Collective Investment Model

Uses land transfer funds to balance village collective renovation investment, achieving effective combination of funding sources and planning execution. Case: Tianhe District Lie De Village.

A. Government-Led Model Challenges:

  • Legality issues in land acquisition
  • Insufficient village rights protection
  • Incomplete legal procedures and low transparency

B. Foreign Capital-Led Model Challenges:

  • Insufficient legal protection
  • Interest balance and social equity issues
  • Cultural and social adaptability problems

C. Government-Coordinated Model Challenges:

  • Ambiguity in authority/responsibility boundaries
  • Legal bottlenecks in capital operation
  • Increased social stability pressure

D. Government-Guided, Collective Model Challenges:

  • Sustainability and legality of capital sources
  • Public resource allocation issues

A. Improve Legal Framework and Policy System

  • Clarify “public interest” definition and compensation standards
  • Add long-term compensation mechanisms

B. Strengthen Village Rights Participation Protection

  • Establish information disclosure systems
  • Improve village self-governance mechanisms
  • Strengthen legal aid

C. Optimize Supervision and Accountability Mechanisms

  • Promote IT-based supervision
  • Establish independent supervision institutions
  • Strengthen legal responsibility investigation

D. Promote System Innovation and Pilot Reform

  • Implement government-enterprise cooperation models
  • Strengthen urban-rural integration development pilots

Conclusion

City village renovation is an important approach for promoting urban modernization and solving urban-rural development imbalances. The complex interest patterns and institutional obstacles require focusing on legal framework and policy system improvement, particularly through clarifying “public interest” definitions, optimizing compensation mechanisms, strengthening village participation rights and information disclosure, and promoting system innovation and pilot reform.

RESEARCH TEAM

CHEN Gonghui Senior Partner

Chen Gonghui, male, born April 1973, holds an LLM from South China University of Technology. He is currently a Senior Partner at Long An (Guangzhou) Law Firm. With twenty-three years of practical experience in economic crime investigation within the public security system, Chen has established a legal team and handled hundreds of criminal cases primarily involving commercial crime, positional crime, entrepreneur (executive) crime, financial securities and insurance crime, contract fraud crime, environmental crime, and criminal-civilian intersections. He has developed a series of criminal non-litigation products including specialized criminal compliance analysis, criminal complaints, criminal emergency response plans, intellectual property criminal protection, enterprise anti-corruption and anti-fraud solutions, crime prevention for shareholders and executives, and enterprise criminal risk compliance system design. Contact: 47/F, Block A, Victoria Plaza, 103 Tiyu West Road, Tianhe District, Guangzhou; Postal Code: 510620; Tel: 13902231368.

LUO Yunyu Partner

Luo Yunyu is a Partner and Deputy Director of the Real Estate Department at Long An (Guangzhou) Law Firm, and a member of the National Construction Engineering and Real Estate Law Professional Committee of Long An. She graduated from China University of Political Science and Law and Renmin University of China, and studied abroad at Erasmus University Rotterdam Law School in the Netherlands during her undergraduate studies under a government scholarship. Attorney Luo previously worked in courts on trial practice for many years and has public service experience. She later worked on urban renewal legal compliance for a large foreign real estate group. After becoming a lawyer, she practiced in real estate and urban renewal legal teams, familiar with legal practice in urban renewal, full-process real estate development, due diligence and investment and acquisition, construction engineering, property leasing and sales, corporate legal compliance, and foreign-related legal business. She has solid legal theoretical foundation and rich legal practice experience. Attorney Luo has provided various legal services to government bodies, village collectives, property owners, local state-owned enterprises and central enterprises, developers, financial institutions, and early-stage service enterprises, participating in over 50 real estate/urban renewal projects in Guangzhou, Shenzhen, and Dongguan. She also serves as standing legal counsel for multiple units and provides professional training for various units and industry associations. Additionally, Attorney Luo has deeply studied outbound business for Chinese enterprises and has been invited by the China Council for the Promotion of Trade, the Turkish Ministry of Trade, and the Turkish Consulate General in Guangzhou to share legal practice on going to Turkey with over a hundred entrepreneurs, and has established close cooperative relationships with relevant institutions in Turkey, Hong Kong, Singapore, and other places, committed to providing professional services for enterprises and entrepreneurs going abroad.