Urban conservation in Lijiang, China: Power structure and funding systems

Over recent decades, urban conservation has become an important strategy to improve urban competitiveness in the global economy. Insufficient attention has been paid to how urban conservation is governed and funded. Drawing on Lijiang Ancient Town, a Chinese World Heritage city, this study examines the power structure and funding systems of urban conservation, how social groups negotiate with the state in this process, and how this framework of governance and funding fits the general patterns of neoliberalism with Chinese characteristics. It argues that the framework turns urban heritage into a growth machine and strengthens the state’s politico-economic power. It also reveals that the entrepreneurial governance strategies are implicated in the interaction between state institutions and social groups. This paper will unravel how different forces can influence the conservation of heritage, and will contribute to an understanding of urban governance in Chinese cities.