Abstract Across the globe, cities are experiencing unprecedented urban population growth, leading to increased pressure on infrastructure and public services. In response, smart cities that leverage IoT, Big Data analytics, and AI for effective resource management have emerged as a solution to increasing urbanization. However, strategies and measures adopted to construct smart cities may negatively impact residents’ legitimate rights and interests. Thus, there is an urgent need for establishing robust legal frameworks that can safeguard residents’ rights and maximize developmental benefits. Hangzhou has implemented a sophisticated legal framework designed to guide the development of a smart city while trying to preserve residents’ other legitimate rights and interests. This article, therefore, explores the critical role of law in shaping the development of smart cities, using Hangzhou as a representative case study. By examining the economic, political, and social imperatives underlying Hangzhou’s regulatory model, this article investigates why the regulatory framework is designed in a particular manner and how it addresses the inherent tensions between innovation and regulation. Furthermore, in discussing the implications of Hangzhou’s regulatory model for other countries seeking to navigate the complexities of smart city development, this article contributes to the broader discourse on urban governance and legal innovation in the digital age, highlighting the transformative impact of law on the evolution of smart cities.
He et al. (2026) studied this question.