THE DEVELOPMENT OF SMART CITIES IN CHINA: AN ANALYSIS OF POLICY FRAMEWORK, DIGITAL ECONOMY DEVELOPMENT, AND PRACTICAL APPLICATIONS

Abstract

Unprecedented urbanization in China has placed increasing pressure on urban governance, infrastructure, resource use, and environmental sustainability. In response, smart city development has been elevated to a national strategy aimed at strengthening urban resilience and ensuring sustainable growth. This study examines China’s smart city trajectory through a four-dimensional framework: national policy design, digital economy evolution, application scenarios, and implementation challenges, drawing on official policy documents and statistical data. The findings show that China’s smart city model is driven by a top-down, multi-level governance system combining central coordination with local implementation. A diverse ecosystem has emerged, led by government actors and supported by state-owned and private enterprises, research institutions, and the public. The expansion of the digital economy is closely linked to early policy experimentation in Special Economic Zones, direct-administered municipalities, and coastal cities, forming a “point-to-area” diffusion pattern. However, key challenges remain, including gaps in top-level design, data fragmentation, weak coordination mechanisms, and unresolved issues of data ethics and cybersecurity. By comparing China’s experience with international practices, the study highlights governance dynamics, institutional foundations, and trade-offs shaping scalable smart city development.