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Journal of Chinese
Architecture and Urbanism Urban regeneration market mechanism research

1. Introduction the market mechanism of urban regeneration under
the guidance of reduction-oriented and high-quality
As China’s urbanization rate reaches 64.72% in 2021, development.
“implementation of urban regeneration” has become
a national strategy in the new era. Compared with 2. Literature review
megacities such as Guangzhou, Shenzhen, and Shanghai,
Beijing, the capital, is facing more stringent requirements 2.1. Market participation in urban regeneration
for reduction-oriented development, non-capital function Urban regeneration in the Western countries has been
decommission, historical protection, the methods of carried out gradually since World War II. Overall, it has
obtaining economic dividends through large-scale gone through the stage of dismantling and rebuilding
demolition and construction, and increasing floor area affordable housing under the leadership of the government
ratios have become strictly limited, thereby reducing the in the 1950s and 1960s and the stage of government and
initiative of various enterprises to participate and slowing enterprise cooperation to promote economic growth in
down the implementation of Beijing’s urban regeneration. the 1960s and 1970s. Subsequently, since the late 1980s,
The “Regulations on Urban Regeneration of Beijing” with the development of neoliberalism and the activation
promulgated in December 2022 proposed a governance of the capitalist market, urban power has been dispersed
pattern of “government-led, market-operated, and multi- in various social subjects. At the same time, the task of
participatory,” which shows that the market players, as building and governing cities is becoming heavier and
the backbone of urban regeneration, undertake essential heavier, resulting in the inability of local government
roles, such as capital investment, coordination and agencies to solve the problems of urban construction and
communication, technical services, and implementation governance. Therefore, there are a growing number of
of operation and maintenance. Establishing a market- updated models of cooperation between the government
oriented mechanism for urban regeneration can and the private sector (Clark, 2001), and bottom-up
effectively mobilize the initiative of various cooperative community planning and public participation are valued
entities in communication, the fairness of negotiation, (Silvers, 1969; Lee et al., 1985). Urban regeneration also
and the continuity of operation, which can effectively brought about the return of the middle class to the city
reduce transaction costs in the process of information center, and the spatial displacement of different classes of
communication, negotiation, and organization and population at this stage (Fang, 1988), triggering debates on
implementation. Therefore, it is urgent to establish a market issues such as spatial justice (Davidoff, 1973), social equity
mechanism to promote the sustainable development of (Castells, 2002), gentrification (Hackworth & Smith, 2001),
Beijing’s urban regeneration. and sustainable development (Bromley et al., 2005; Zheng
et al., 2014; Roberts & Sykes, 2000), among others.
Obtaining economic benefits is the main motivation for
market players to participate in urban regeneration (Zhao Urban regeneration governance involves various
& Song, 2021). The balance of costs and benefits of multiple aspects, such as “Multiple Stakeholders – Capital Source
parties is the core of sustainable urban regeneration. – Physical Space – Operation Service” (Tang et al., 2022),
That is why constructing a market mechanism for urban and it is a complex systematic engineering involving the
regeneration focuses on the formation of multi-subject demands of multiple subjects’ cooperation (Shen et al.,
cooperation and the balanced distribution of value-added 2021), extensive financial guarantees, space management
benefits (Tallon, 2019; Yang, 2012; Wang et al., 2022). innovation, and long-term operation and maintenance. It
Existing studies mainly focus on the game of interests has aroused attention and research in different disciplines.
under the large-scale demolition and reconstruction The theory of space production proposed by Lefebvre
model. However, there are few studies on the regeneration first regards space as a social product which profoundly
mechanism of Beijing in the new era with comprehensive participates in the process and structure of social change and
renovation as the main mode. On the analysis of typical plays an important role in promoting capital appreciation
cases of urban regeneration implemented in Beijing and safeguarding public interests (Lefebvre, 1991; Harvey,
in recent years, this study focuses on two issues. First, 2001; Harvey et al., 2018). Molotch regarded the economic-
how do the multi-stakeholders cooperate and interact growth-oriented alliance as the “growth machine,” which
in the process of urban regeneration? Second, what are dominates the development process of urban regeneration
the characteristics of benefit distribution in different (Molotch, 1976). Stone put forward the urban regime
governance structures? Furthermore, this study attempts theory based on empirical research in Atlanta. He believed
to put forward corresponding strategic suggestions and that the informal cooperative relationship between the city
provide ideas for the construction and optimization of hall and the business elites formed the joint participation

Volume 6 Issue 1 (2024) 2 https://doi.org/10.36922/jcau.0885