Urban densification and its implications remain underexplored in China, especially regarding the regeneration of urban decaying areas. This study contributes to the discourse by investigating densification as a strategic urban regeneration tool in China’s state–market development, focusing on one of the most common forms of residential areas in post-reform urbanization, the resettlement neighborhood. Integrating fieldwork, archival research, interviews, and media analysis, the study examines a pioneering densification in the transition of state-entrepreneurialism to a free market. Unlike Western cases, prompted by private interests, the local government leveraged densification to reconcile social stability with economic imperatives. Notably, the project avoided displacement and gentrification by funding works through commercial space development. However, while the regeneration project achieved improved living standards and urban space enhancement, findings reveal that the financial profitability due to densification was undermined by inadequate alignment between political objectives and economic realities. Despite the initial intentions, the densification process was not replicated due to its failure to generate sufficient profit. The study underscores the challenges of implementing densification within a neoliberal–authoritarian framework, where state control, market liberalization, and social equity can be conflicting. It also emphasizes the role of densification in shifting from land-based urbanization to urban regeneration within profit-maximizing state entrepreneurialism. The study also highlights the need for feasibility assessments and adaptive planning in the transition. Additionally, the study reflects on the broader implications for the transformation of typical resettlement neighborhoods across China, which face decay and rising living standards.
Pellegrini et al. (Fri,) studied this question.