Capitalist processes of urbanization and privatization have produced a growing number of enclosed neighbourhoods across the world. Critical scholarship often frames these neighbourhoods as products of an overextended neoliberalism and symbols of the fragmentation, segregation, and hierarchization of both space and society. This paper expands on these theoretical explanations with a focus on China. As neither neoliberal globalization nor tradition can adequately explain various types of China's enclosed neighbourhoods, a differentiated account suggests that they have evolved in different temporal, sociocultural, and political-economic contexts. Nevertheless, they have commonly played vital roles in (re)shaping everyday environments, driving economic restructuring, transforming governance systems, and facilitating normative transformations in China. China's experiences show that enclosed neighbourhoods have been, and will remain, the everyday environments that shape citizens' behaviours, values, and social relations. They have also served, and will continue to serve, as the vital infrastructure that enables both civic engagement and biopolitical control – an irony that remains to be resolved. Lessons from China suggest that future research and practice on enclosed neighbourhoods in different parts of the world can embrace the heterogeneity, adaptability, and practicability of neighbourhood transformations to inspire design and development innovation, enhance social cohesion, and empower citizens.