Old city reconstruction is an important part of urban construction and a necessary stage for urban modernization. The implementing of old city reconstruction is an important initiative to improve the urban environment, increase the urban grade and benefit the people. It has a great significance to expand the urban development space, increase the comprehensive urban competitiveness and promote the urban economy and society development. The comprehensive treatment of old residence communities is a weak point of urban construction and management. It is necessary to comprehensively treat the old residence communities in order to improve the living environment and raise the whole city image. Cities can develop harmoniously only after both symptoms and root causes are solved. 

The urban regeneration is a natural extension of old city reconstruction. It concentrates several elements, not only including urban infrastructures, but also integrating industry, living and people. Additionally, it leads the urban infrastructure to meet demands. Pay attention to the urban card shaping, culture creativity, special urban space reconstruction, community functionality and humanity reconstruction, from which to find out the breakthrough point for transformation of architectural design.

China now is transforming from traditional manufacturing industry to the tertiary industry. With the variation of times, environment and industrial structure, the social demand is also changing. The government needs to consider the urban renewal from the perspective of function exchange. The adjustment of industrial structure is becoming the market power to drive urban regeneration. It is necessary for the government to guide according to circumstances and focus on the trend of “urban regeneration”, thus realizing the balanced development of society, government and enterprise. Motivate decision-makers to support the urban regeneration that needs to be cultivated through legislation from the aspects of tax, fund, infrastructure and so on to put the plans and investments of designers, architects and private enterprises into practice. And gradually introduce private capitals, private plan and design think tank, and private professional private operation and management team to participate in, andignite the flame of urban regeneration through a series of projects. 

With the continuous improvement of science and technology and the gradual development of social civilization, the aging problems in many cities that were built in the early stage of China opening and reform period appear. The imperfection of supporting facilities, lack of humanity, high consumption and hidden safety troubles are not only livelihood problems, but also the stumbling blocks of urban development. To solve the problem, the Sate Council classifies “modernize old city reconstruction” as a key development strategy in next phase, which brings powerful support to old city reconstruction. Li Keqiang, Prime Minister, held the Executive Meeting of the State Council on September 29, 2015. He proposed in the bulletin that “The sponge city should be constructed in combination with the upgrade of shanty town, dilapidated house reconstruction and old residential community”. It means that the upgrade of old residential community has been transferred from policy recommendation to a measure that counters the economic downturn, and also stresses the close combination between the organic renewal of old residential community and vigorous construction of “sponge city”.