Chongqing - Investment in urban renewal accounts for only about three percent of China's construction industry, compared with roughly 30 percent in many Western countries and even in Hong Kong. According to Liu Guiwen, vice president of Chongqing University, that gap represents enormous growth potential and a chance for urban renewal to become a new engine of economic vitality. 

Liu made the remarks at the 2025 World Cities Day China Observance forum in Chongqing on October 28. The forum brought together scholars, city planners, government officials, and business leaders to discuss how institutional reform, technological innovation, and improved management could transform how megacities are governed.

The 2025 World Cities Day China Observance forum, held in Chongqing on October 28, explored new approaches to reshaping the governance of megacities. (Photo/Chongqing Daily)

Experts at the event agreed that China's urban renewal is profoundly transforming — shifting from physical reconstruction to digital regeneration. The next stage of renewal, experts noted, is not only about reshaping skylines but also about rethinking how cities are governed. To revitalize urban life, cities must be reimagined through a digital mindset that rewires their very “veins and nerves.” This vision is already taking shape in Chongqing, where innovation and intelligent governance are redefining what modern urban renewal means.

In recent years, Chongqing has invested heavily in creating an intelligent governance model that integrates digital platforms, cross-department collaboration, and data-driven decision-making. The approach not only aligns with China's broader goals for modernization but also offers lessons for other megacities around the world confronting complex urban challenges.

At the forum, Liu attributed Chongqing's rapid progress to strong government leadership, systematic planning, and effective cross-sector collaboration. Among these, the most distinctive achievement, he noted, has been the city’s ability to mobilize capital efficiently.

In government-led urban renewal projects, Chongqing has integrated a variety of funding sources — including dedicated renovation funds for old residential communities, special-purpose government allocations, investments from professional operators, and contributions from other social capital.

Raffles City Chongqing. (Photo/Chongqing Daily)

Every city should have its own AI factory

The most forward-looking idea presented at the forum came from Luo Sen, Deputy General Manager of Inspur Cloud. Luo said, generative AI and intelligent agents designed for urban applications are entering a phase of explosive growth, and are expected to become mainstream within the next two to five years. In response, China has rolled out a series of policies to accelerate AI development, aiming to build an intelligent economy and society by 2035.

However, major challenges remain — including limited computing power, slow progress in algorithmic innovation, and uneven data quality. “We shouldn’t address these problems in isolation,” Luo explained. “Cities need a systemic solution — an infrastructure that can support large-scale innovation.”

He proposed the AI Factory concept as such a solution — a comprehensive system that integrates computing power, data, and algorithms to drive innovation across multiple urban domains. Similar facilities are already emerging around the world, from Harvard University’s AI Factory to pilot projects across Asia.

Luo believes that AI Factories will become the innovation foundation of future cities, unlocking new efficiencies through industrialized, scalable AI systems.

“Every city should have its own AI factory,” he said. “It will inject AI-driven power into urban development and help create a future where people, cities, and intelligence evolve together.”