China sets key milestones to accelerate smart city digital transformation

China has established two key milestones to accelerate smart city digital transformation and reshape its urban landscapes into more efficient, livable, and economically vibrant hubs.

The National Development and Reform Commission, the National Data Administration, the Ministry of Finance, the Ministry of Housing and Urban-Rural Development, and the Ministry of Natural Resources formulated the Action Plan for Deepening the Development of Smart Cities and Advancing the Citywide Digital Transformation.

The plan proposes to establish more than 50 city-wide digital transformation demonstration cities by the end of 2027. Goals include building a smart and efficient urban governance system, promoting the valorization of data elements, improving the quality of the living environment, and creating a coordinated and intensive digital infrastructure. 

Asia-Pacific (APAC) businesses are leading the way in digital transformation, outpacing global peers in embracing digital tools. The Zoho Workplace Digital Transformation Survey 2025 found that the APAC region is ahead in several key areas – outperforming other regions in artificial intelligence (AI) adoption and structured collaboration processes.

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China sets 2027 and 2035 milestones for smart city digital transformation

By the end of 2027, notable progress shall be achieved in empowering urban economic and social development with data, according to the plan. “Mechanisms for the efficient handling of key urban operation events and one-stop government services shall be fully implemented, with the former covering key urban operation events and the latter covering high-frequency livelihood-related affairs.”

The digital economy shall become a new driving force for urban development. “Breakthroughs shall be achieved in key areas and critical links such as intelligent and efficient urban governance, convenient and inclusive livelihood services, and the digital renewal of cities.”

More than 50 cities will have completed city-wide digital transformation with megacities and super large cities taking the lead in building new systems for intelligent and efficient governance and deploying a number of advanced, practicable, and independently controllable large urban models.

By 2035, a number of modern cities with international competitiveness and global influence shall emerge.

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A data-driven, application-oriented approach

A data-driven and application-oriented approach shall be adopted, and development and security shall be advanced in a coordinated manner, the plan read. “Cities shall serve as integrated carriers for advancing the development of a digital China. Emphasis shall be placed on empowering overall urban economic and social development with data, supported by the construction of urban digital foundations and safeguarded by adaptive digital reforms.”

Facility interconnection, data interlinkage, platform interoperability, and business integration shall be promoted. City-wide digital transformation shall be advanced across all domains, transformation support shall be comprehensively strengthened, and the transformation ecosystem shall be optimized throughout the entire process. “The level of intelligent and refined urban governance shall be improved to inject a strong impetus into building modern cities for the people.”

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