Abstract
Implementing demolition and transformation policies in urban villages is essential for effective urban governance. However, these villages possess distinctive governance models and entities that set them apart from general urban and rural communities. This study examines the autonomous “informal governance” process in Guangzhou's Yuancun urban village through a case study approach. It investigates the formation mechanisms of the “dual system”. The study underlines the significance of grassroots innovation and the Chinese Communist Party's role in attaining governance autonomy. Despite the government's aim to integrate urban villages into the urban governance system, persistent challenges arise from these unique models and entities. The Village Company plays a pivotal role in promoting stable governance through participatory practices and economic advantages. Resolving the complex issues in urban villages necessitates integrated economic, political, and social solutions. Empowering the Village Company to handle specific public affairs can facilitate the transition towards the modernization of grassroots governance.
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