Urban investment and development corporations, new town development and China’s local state restructuring – the case of Songjiang new town, Shanghai

Abstract

This article seeks to understand China’s new urban space production and associated state space rescaling through a microscopic investigation of urban investment and development corporations (UIDCs), based on a case study of Shanghai’s Songjiang New Town Development Corporation (SNTDC). It argues that the introduction of UIDCs as both developers and managers of designated urban regions is a creation of institutional reformation to accomplish customized place- and scale-specific spatial projects under the state strategy of new urban spatial development, playing an essential part in the rescaling of state space. UIDCs are economically independent of other social groups, politically bonded with the local government, and assume entrepreneurial and administrative functions within designated areas, acting as intermediary agents to enable local states greater capacity in governing new urban space production, engineering social change, and propelling economic development.