Five Departments Jointly Voice Their Opinions on the Continuous Promotion of Urban Renewal Initiatives

The State Council Information Office held a press conference at 10 a.m. today, inviting Qin Haixiang, Vice Minister of the Ministry of Housing and Urban-Rural Development, and relevant officials from the National Development and Reform Commission (NDRC), the Ministry of Finance, the Ministry of Natural Resources, and the National Financial Regulatory Administration to introduce the "Opinions on Continuously Promoting Urban Renewal Initiatives" and answer questions from journalists.

Qin Haixiang, Vice Minister of the Ministry of Housing and Urban-Rural Development: China's urban development has shifted to focusing on both improving the quality of existing stock and adjusting the structure of incremental development, entering a crucial period of urban renewal.

At the State Council Information Office press conference on May 20, Qin Haixiang, Vice Minister of the Ministry of Housing and Urban-Rural Development, stated that since 2021, the government work report has made arrangements and put forward clear requirements for urban renewal initiatives every year. Currently, China's urban development has shifted from large-scale incremental construction to focusing on both improving the quality of existing stock and adjusting the structure of incremental development, entering a crucial period of urban renewal. The needs of the people have shifted from "having" to "having good quality." Qin Haixiang said that implementing urban renewal initiatives aims to promote the optimization of urban structure, improvement of functions, and enhancement of quality, driving high-quality urban development. At the same time, it can effectively boost investment and consumption, expand domestic demand, and continuously meet the people's needs for a better life. It is of great significance for promoting economic growth and further safeguarding and improving people's livelihoods.

Strengthen the renovation and utilization of existing buildings, and strive to transform old and dilapidated houses into good ones.

At the State Council Information Office press conference, Qin Haixiang stated that the recently released "Opinions on Continuously Promoting Urban Renewal Initiatives" is a guiding document for implementing urban renewal initiatives. In terms of task arrangements, the "Opinions" deploy the promotion of the "Four Goods" construction: "good houses, good residential communities, good neighborhoods, and good urban districts," demonstrating strong systematicness. The construction of "good houses" mainly focuses on vigorously building safe, comfortable, green, and smart houses. At the same time, it strengthens the renovation and utilization of existing buildings, striving to transform old and dilapidated houses into good ones, steadily advancing the renovation of dangerous housing, and enhancing the renovation and utilization of existing buildings such as old factories, inefficient buildings, and traditional commercial facilities.

Over 940 million people in China live in urban areas.

At the State Council Information Office press conference, Qin Haixiang stated that as of the end of 2024, the urbanization rate of the permanent resident population reached 67%, with 940 million people living in urban areas. The comprehensive carrying capacity of cities has steadily improved, the living environment has continued to enhance, and the quality of urban development and people's living standards have significantly increased.

A total of 280,000 old residential communities have been renovated nationwide, benefiting 48 million households and over 120 million people.

At the State Council Information Office press conference, Qin Haixiang stated that in recent years, the Ministry of Housing and Urban-Rural Development has guided various regions in steadily advancing the renovation of old residential communities in urban areas. By the end of 2024, a cumulative total of 280,000 old residential communities had commenced renovation nationwide, benefiting 48 million households and over 120 million people.

Continue to prioritize the "hidden" projects and steadily advance the upgrading and renovation of urban underground pipeline networks

Qin Haixiang stated at a press conference held by the State Council Information Office that the Ministry of Housing and Urban-Rural Development (MOHURD) will promote the detailed implementation of infrastructure renovation tasks, continue to prioritize "hidden" projects, and steadily advance the upgrading and renovation of urban underground pipeline networks for gas, water supply, sewage, drainage, and heating, as well as construct underground utility tunnels according to local conditions. The ministry will continue to enhance urban safety and resilience by implementing projects to improve urban drainage and flood prevention, advancing the safety rectification of urban gas systems, and accelerating the construction of urban lifeline safety projects.

Construct and improve public service facilities for the elderly and childcare in communities according to local conditions

Qin Haixiang stated at the press conference that the "Opinions on Continuously Promoting Urban Renewal Actions" identifies the renovation of old urban residential communities and the construction of complete communities as key tasks in continuously advancing urban renewal actions. Moving forward, the MOHURD will guide local authorities in effectively organizing and implementing these tasks. On one hand, building on the completion of the "14th Five-Year Plan" target for renovating old urban residential communities, the ministry will continue to advance this work, with a focus on renovating aging pipelines within communities to eliminate safety hazards. It will carry out repairs to public areas such as building rooftops, exterior walls, and staircases, as well as renovate and construct community environments and supporting facilities, and implement energy-saving renovations for buildings within communities. The ministry will also support the installation of elevators in eligible buildings to improve residents' living conditions and environments. On the other hand, the ministry will continue to promote the construction of complete communities, constructing and improving public service facilities for the elderly and childcare, as well as municipal supporting facilities such as parking and charging stations, according to local conditions, to make people's lives more convenient, comfortable, and beautiful.

Accelerate the promotion of new-type urban infrastructure construction

Qin Haixiang stated at the press conference that, moving forward, the MOHURD will accelerate the promotion of new-type urban infrastructure construction, utilizing information and digital technologies to enhance the intelligence level of infrastructure, expedite the improvement of long-term management systems for infrastructure operation and maintenance, explore new models for investment, financing, construction, and operation of urban development, and continuously enhance the level of urban infrastructure construction, management, and services.

NDRC's Zhao Chengfeng: Central budgetary investment plan for 2025 urban renewal projects to be issued before the end of June

Zhao Chengfeng, head of the Fixed Asset Investment Department of the National Development and Reform Commission (NDRC), stated at a press conference held by the State Council Information Office that the NDRC will continue to advance various urban renewal tasks and increase central investment support. This year, the central government has specifically allocated funds within the budget for urban renewal projects, supporting the construction of public infrastructure and public service facilities related to urban renewal. On the basis of supporting projects such as the renovation of old urban residential communities and urban villages, the scope of support has been expanded to include projects for the transformation and quality improvement of dilapidated urban housing, old neighborhoods, and old factory districts. Currently, the National Development and Reform Commission (NDRC) is organizing the submission of plans and project evaluations, and will issue the 2025 central budget investment plan for urban renewal projects before the end of June this year.

This year, ultra-long-term special treasury bonds will continue to support the construction and renovation projects of urban underground pipeline networks.

At a press conference held by the State Council Information Office, Zhao Chengfeng stated that in the funding arrangements for ultra-long-term special treasury bonds for the implementation of major national strategies and the development of security capabilities in key areas (referred to as the "two major strategies"), support will continue to be provided for the construction and renovation projects of urban underground pipeline networks. The use of local government special bonds will be optimized to continue supporting eligible urban renewal projects. The new mechanism of Public-Private Partnership (PPP) and the role of Real Estate Investment Trusts (REITs) in the infrastructure sector will be fully leveraged.

The implementation of key urban renewal projects will be steadily and orderly advanced.

At a press conference, Zhao Chengfeng stated that the NDRC will steadily and orderly advance the implementation of key urban renewal projects in the next step. In accordance with the principles of "overall planning with a focus on key areas," "addressing urgent needs first and implementing in stages," and "government guidance with market operations," priority will be given to implementing basic projects related to public safety and livelihood security, such as the safety enhancement of urban underground pipeline networks, the livable renovation of old residential areas, the comprehensive renovation of urban villages, and the safety renovation of municipal facilities. Improvement projects, such as the transformation and quality improvement of old neighborhoods (factory districts) and the enhancement of urban public space functions, will be steadily advanced according to local conditions. The NDRC will guide urban governments in scientifically and reasonably planning specific urban renewal projects.

Guo Fangming, Director-General of the Department of Economic Construction of the Ministry of Finance: Encouraging policy banks to provide support for eligible urban renewal projects

At a press conference held by the State Council Information Office, Guo Fangming, Director-General of the Department of Economic Construction of the Ministry of Finance, stated that the Ministry of Finance is focusing on the synergy between fiscal and financial policies to promote the improvement of investment and financing mechanisms, expand the investment areas for local government special bonds, and increase support for urban renewal-related projects. The leveraging role of policy-based financial instruments will be utilized to encourage policy banks to provide support for eligible urban renewal projects on the premise of risk controllability and commercial sustainability. The catastrophic insurance system for urban and rural residential housing will be improved to better provide catastrophic risk coverage, and an investment and financing model for sustainable renewal and renovation, guided by the government, operated by the market, and participated by the whole society, will be actively explored. Private enterprises will be encouraged to participate in the concession operations of infrastructure and public utilities.

In 2024, central budget investment and other funds exceeding 425 billion yuan will be allocated to support local projects such as urban gas pipeline renewal and renovation.

Guo Fangming stated at the press conference, "Since the 14th Five-Year Plan, central subsidy funds of approximately 159.4 billion yuan have been allocated to support the renovation of old urban communities. Since 2023, central subsidy funds of 15.3 billion yuan have been allocated to promote the renovation of urban villages. During the 14th Five-Year Plan period, central subsidy funds of about 60 billion yuan will be allocated to support 60 cities in systematically advancing sponge city construction, driving a total investment of 160 billion yuan. In 2024, central budget investment, ultra-long-term special government bonds, and additional government bonds exceeding 425 billion yuan will be allocated to support local projects such as urban gas pipeline renewal and renovation, and urban drainage and flood prevention improvement projects. While increasing capital investment, the Ministry of Finance actively implements preferential tax policies, such as the 'three exemptions and three reductions' for corporate income tax, and reductions in urban land use tax, urban infrastructure supporting fees, and education surcharges. The next step will continue to leverage these channels for sustained efforts.

Zhang Bing, Chief Planner of the Ministry of Natural Resources: Actively Supports the Preparation of Special Urban Renewal Plans

Zhang Bing, Chief Planner of the Ministry of Natural Resources, stated at the State Council Information Office press conference that efforts will be made to leverage the leading role of territorial spatial planning, strengthen guidance and baseline constraints for special plans, and collaboratively advance urban renewal actions. Actively support the preparation of special urban renewal plans, guide the implementation of the strategic positioning and spatial layout of the overall plan, legally and regulatively connect with detailed plans, and improve the regular inspection and five-year evaluation system.

More Practical and Effective Land Use Policies Will Be Introduced to Support Urban Renewal Actions

Zhang Bing stated at the State Council Information Office press conference that the Ministry of Natural Resources is currently summarizing and promoting the experiences of 43 pilot cities for inefficient land redevelopment through building communication platforms and increasing publicity efforts. Further improve the policy mechanisms for planning control, use regulation, land reserve, land supply, and real estate registration, and introduce more practical and effective land use policies to support urban renewal actions.

Liao Yuanyuan from the Financial Regulatory Authority: A Special Loan Management Method for Urban Renewal Projects Will Be Studied and Introduced

Liao Yuanyuan, Director of the Statistics and Risk Monitoring Department of the Financial Regulatory Authority, stated at the State Council Information Office press conference that the Financial Regulatory Authority will guide financial institutions to deeply understand the internal logic of urban renewal actions, accurately grasp new characteristics and requirements, and actively provide diverse and tailored financial products and services for urban renewal actions in accordance with the principles of legality, compliance, risk control, and commercial sustainability, meeting the financial needs of different entities, projects, stages, and links. Liao Yuanyuan stated that the National Financial Regulatory Administration will guide financial institutions to study and formulate supporting institutional processes, business systems, and performance evaluation systems in line with the specific requirements of urban renewal initiatives. It will fully leverage the unique strengths of different types of financial institutions, ensuring that financial resources are allocated effectively and achieving seamless integration with fiscal funds and social capital. The National Financial Regulatory Administration will research and introduce specialized management measures for loans for urban renewal projects, clarifying loan conditions and standards to meet the financial needs of urban renewal initiatives and enhancing the timeliness and effectiveness of financial services.