Reports

Discussion Papers

No.966 Legalizing Illegal Construction: Government Action in Guangzhou

by Zhe Ren

October 2025

ABSTRACT

This paper examines the legalization of unauthorized construction in the redevelopment of urban villages in Guangzhou. Using Lijiao Village and Kangle Village as case studies, it explores how local governments navigate compensation policies, administrative enforcement, and land-use regulations. The findings reveal inconsistencies in policy and legal ambiguities, leading to varied outcomes in demolition and compensation. The study argues that addressing informal housing issues requires clear legal frameworks and a balance between urban modernization and social equity.

Keywords: Urban Village, Illegal Construction, Local government, China
JEL classification: K11, K42, R52, O30

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