Toward pragmatic municipal statecraft: Interrogating transitional strategies of the local state in the Yousong Redevelopment Project, Shenzhen

This study examines the variegated municipal statecraft in relation to the pragmatic turn within the context of contemporary China’s urban governance. Using the Yousong Redevelopment Project in Shenzhen as a case study, it explores how municipal governance strategies adapt to financialization and fiscal austerity while balancing the state’s authority, private-sector collaboration, and public welfare. The findings reveal a hybrid governance model in which municipalities strategically integrate private developers’ speculative interests to achieve a balance between developmental objectives and welfare provision. This approach mitigates fiscal risks by transferring speculative responsibilities to private entities while maintaining state control over urban projects. The study highlights the compromises between profit-driven development and public service provision, reflecting a unique adaptation of municipal policymaking under China’s urban regime. The analysis underscores the evolving dynamics of urban governance in the post-growth era, where financial constraints, administrative accountability, and social demands converge to shape local governance strategies. This case exemplifies the nuanced relationship between the state, the market, and society in China’s urban transformation.