In this paper, we document the displacement and resettlement of over 11,000 villagers who were removed from their homes and relocated in modern apartment blocks to make way for the construction of a new business district in the western suburbs of Shanghai. We examine the expectations and concerns of displaced residents before and after their relocation. Our findings showed that while the former villagers recognized the improvement in their physical surroundings, they were deeply concerned about their loss of rental income resulting from the demolition of their former homes, in which they housed unregistered migrants. They felt unfairly treated by government throughout the relocation process and saw themselves as being decanted into a new village-in-the-city. These results paint a much more unequivocal picture of resident dissatisfaction than is found in some other recent research.
While there is general acceptance that urban governance in China is entrepreneurial in nature, little has been written about the precise ways in which Chinese cities implement entrepreneurial policies. In this article we argue that the primary agents of urban entrepreneurialism in China are urban investment and development companies (UIDCs), known in Chinese as chengtou for short. We start by defining UIDCs as a category of state‐owned enterprise, but one that is wholly owned by local (often city) governments. We note that in the literature UIDCs are generally recognized for their involvement in raising funds for projects and piling up hidden debts, but their multiple roles in urban development tend to be neglected. We introduce here four UIDCs that have been largely responsible for the transformation of Shanghai into a modern city spearheading Chinese state entrepreneurialism, and in doing so we delineate the full range of the activities of these urban business empires. We argue in particular that they represent a corporate involvement by the state in urban development—the state presenting itself in the guise of a market player, a corporate entity able to raise funds and act as if it were a private company. UIDCs are the driving force behind China's urban entrepreneurialism and are without a clear parallel elsewhere.
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