Existing literature on co-governance has extensively discussed how the state interacts with various actors beyond the government to promote urban development. In China, the discourse and practice of co-governance illustrate different trajectories from the West. As the urban development strategies in China shifted from property-led expansion to inner-city neighborhood regeneration, the importance of multiscalar participation in governing community affairs has been increasingly emphasized, moving beyond the government-market dichotomy and emphasizing negotiation and collaboration among the government, market participants, stakeholders, and the public. Based on practical experience and participatory action research in Guangdong province, we identify three models of co-governance in recent neighborhood regeneration practices: (1) the state-led co-creation model for conflict-mediation purposes, which primarily relies on local government and party organization to mediate inherited conflicts and rebuild local trust for promoting the regeneration agenda; (2) the professional-led place-making model for consensus-building purposes, which focuses on reshaping daily habits and beautifying public spaces to achieve consensus-based aspirations for neighborhood development; and (3) the co-production model, driven by society-community partnership, which reflects the emergence of new commons, encompassing dynamic reconfigurations on both socio-economic and institutional dimensions. Through case studies in Guangzhou and Foshan, specifically in the Enninglu, Keyuan, and Dongfeng neighborhoods, we illustrate how local governments enhance the inclusiveness and effectiveness of neighborhood governance by engaging various third-party actors, such as local enterprises, community planners, and residents’ self-help groups. Local governments are skillfully avoiding direct confrontation with residents by incorporating community planners and empowering social actors to promote co-production among multiscalar participants. By examining the emergence, functioning, and dilemmas of different co-governance models in China’s latest neighborhood regeneration practices, this study enriches the existing framework of the state-market-society landscape, demonstrating the plurality of the state’s governance intentions and highlighting the political space in which grassroots governance is constituted.
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