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Smart Shrinkage Strategies for Rural Economic and Settlement Revitalisation in China

  • Khairul Hisyam Kamarudin
  • Hu Jianke
  • Mohamad Fadhli Rashid
  • Nadzirah Hosen
  • 453-465
  • Mar 27, 2025
  • Education

Smart Shrinkage Strategies for Rural Economic and Settlement Revitalisation in China

Khairul Hisyam Kamarudin*, Hu Jianke, Mohamad Fadhli Rashid, Nadzirah Hosen

Department of Urban and Regional Planning, Faculty of Built Environment and Surveying, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia.

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.90300036

Received: 12 February 2025; Accepted: 26 February 2025; Published: 27 March 2025

ABSTRACT

Rural areas in China have undergone significant transformation throughout history, influenced by various economic, social, and political factors. Amidst rapid urbanisation, rural settlements face challenges of population decline, loss of labour force, and significant aging. This article explores the concept of rural smart shrinkage as a catalyst for revitalising rural economies and settlements, focusing on the case study of Chitu village in China. Series of research fieldwork have been conducted between October until December 2023 with a total of 85 respondents participated in the questionnaire-guided interview survey. Based on quantitative data analysis, Chitu village exemplifies strong shrinkage phenomena of rural areas, including surplus unused residential areas and low space utilisation due to numerous vacant houses. Despite convenient transportation links to urban areas, Chitu is situated at a considerable distance from the urban core, placing it in the category of traditional agricultural villages. The primary industry dominates Chitu’s economy, highlighting the need for diversified economic strategies to ensure sustainability. To address these challenges, this article proposes smart shrinkage planning strategies cantered around four main components namely; protecting and fostering the village population, managing and optimising resources and small-scale industries, enhancing village architecture and spatial planning, and promoting sustainable development and design. By prioritising these strategies, Chitu village and other rural communities in China can achieve rural renewal amidst the context of rapid urbanisation, ensuring balanced and sustainable economic growth while preserving their unique cultural and environmental heritage.

Keywords: Rural revitalisation, smart shrinkages, aging rural, local economic development, sustainable development

INTRODUCTION

The shrinkage of the countryside, characterised mainly by a decline in population, is not a new phenomenon. In modern times, the number of cities and the size of their populations have grown as a result of capital development and industrialisation which has given rise to agglomeration economies and promoted urbanisation (Hadi Wijaya et al., 2023; Richardson & Nam, 2014). The concentration of capital, labour, technology, and other factors of production in cities has led to a shift of population from the urban periphery, especially the surplus labour force in rural areas, to cities (Kamarudin et al., 2024; Wu et al., 2022). Some studies have shown that globally, people tend to live in urban areas (Kamarudin et al., 2020). The rapid transfer of population to large cities inevitably led to a strain on urban resources, and when the economic benefits of urban agglomeration were lower than the costs, urban development was inevitably slowed down and various urban issues emerged. As evidence in the case of early stages of urbanisation in Britian, South Korea and Japan, industrialisation was promoted at the expense of the agricultural industry, resulting in agricultural stagnation and the decline of the countryside (Palmer, 1988; Ushiyama, 2012). Similarly, developing countries such as China and Malaysia are beginning to see a mass exodus of rural to urban populations and an ageing rural population.

However, in the context of globalisation and the ‘urban age’, scholars are now increasingly concerned with the shrinking of large and medium-sized cities and planning responses, while paying less attention to the countryside (Wolff & Wiechmann, 2018; Bernt et al., 2014). The countryside, often considered at the bottom of the urban hierarchy, is the most neglected component of the overall urban structure (Stoica et al., 2020), yet it plays a crucial role in urban and national development (Courtney et al., 2007; Hinderink & Titus, 2002). Researchers need to closely examine the characteristics and mechanisms of rural shrinkage in different parts of the world. Therefore, studying rural shrinkage has significant theoretical and practical implications, particularly for the governance, transformation, and rejuvenation of shrinking towns (Richardson & Nam, 2014; Servillo et al., 2017). Concurrently, the growing issue of aging populations in countries such as China, Korea, and Japan are more pronounced in rural areas and warrants attention. This study thus analyses and examines the decline of rural areas due to aging populations based on smart shrinkage theory.

LITERATURE REVIEW

Overview of Rural Planning in China

In China, the countryside, with its specific natural landscape and socio-economic conditions, refers to the places where labourers and people mainly engaged in agriculture-related industries. Rural areas, as opposed to urban and town areas, are agricultural areas with towns, villages, and predominantly agricultural industries, including a variety of farms, forests, horticulture, and vegetable production (Servillo et al., 2017; Kamarudin & Rashid, 2020). As mentioned by Duan et al. (2021), Gao (2021) and Xu & Zhai (2023), the planning for rural development in China is influenced by the national system, urban-rural relations, and values, and presents phased characteristics as highlighted in Table 1.

Table 1. Rural development agendas in China based on different period of time

Period Key agenda / planning focus Explanations
1949 – 1977 Exploration of rural planning with “people commune” as the development unit ·       In the early days of the People’s Republic of China, the nation required extensive reconstruction. To revitalise agricultural production in rural areas and bolster urban industry, the socialist transformation of the countryside and the people’s commune movement were initiated.

·       In 1953, the mutual aid groups and cooperatives were established to unified planning and construction of the countryside.

·       In 1958, the “people’s commune” model of rural development was introduced to include comprehensive guidance for agriculture, forestry, fishery, animal husbandry, culture, and education together with the development of basic infrastructure in rural areas.

·       The absence of theoretical guidance, professional support, and consideration for local conditions resulted in the stagnation of village development diversification.

1978-2002 Gradual improvement of laws, regulations, and technical standards ·       “People commune” model was replaced by the system of responsibility for joint production by families and village land reform.

·       A series of pilot village planning preparation were carried out in various parts of China with the arrangement of land for farmers’ residential construction as the main agenda.

·       Within this period, village planning has developed significantly in terms of regulations and standards, technical personnel, and development management, leading to expanding “urban planning” to “urban and rural planning”.

2003-2017 New rural development characterised by “urban-rural integration” ·       In 2002, the strategy of “urban-rural integration” was proposed, and the government became the leading force in village planning and development, and rural areas received a large amount of government resources.

·       Rural development at this stage focused on the foundation, which has changed the face of rural to become more influenced by the values of local governments at all levels and grassroots active participation in local economic development.

·       Wider acceptance and participation of local stakeholders in turn, increasing financial investment for rural development and transformation.

2018-present A new era with rural revitalisation as a goal ·       After more than a decade of new rural development, the gap between urban and rural areas in China still have not been fundamentally changed.

·       Village planning pilot projects were launched nationwide, prioritising practicality and a comprehensive approach for land spatial planning reform and rural revitalisation strategies.

·       At this stage, village development isn’t merely replicating urban models or focusing solely on engineering or idyllic sentiments. It’s about enriching rural life dynamics and enhancing living quality.

Issues and Challenges of Rural Development in China

Review of literature has identified few issues and challenges related of rural development in China that has been summarised in Table 2.

Table 2. Summary of key issues and challenges for rural development in China based on literature review

Issue Explanations
Loss of rural labour force Due to the slow progress of rural development, reliance on small-scale farming, numerous instability factors, and a lack of alignment with societal needs, economic growth remains sluggish. Moreover, challenging terrain and unsuitable natural conditions in central, western, and remote mountainous areas obstruct industrialisation efforts, impeding modern development in these regions.
The marketing and quality of agricultural products are not guaranteed At present, the most common problems in rural development include scattered production capacity of agricultural and sideline products, single sales channel, high quality and price of industrial products, and slow development of e-commerce.
Mismatch between labour costs and income Over time, agricultural production costs have risen steadily, while product prices have remained stagnant or fluctuated significantly. Factors like increasing costs for inputs such as fertiliser, pesticides, and machinery have burdened farmers financially, reducing their incentive to cultivate crops. Weather and environmental challenges also contribute to mismatches between harvest yields and labour investments, worsening farmers’ financial strain.
Poor infrastructure Most of the facilities in China are concentrated in remote villages, with relatively poor housing and medical conditions, inconvenient transportation, and lack of educational resources. Agricultural production is difficult and labour-intensive, and it is difficult to compete with other industries to attract more talents.
Wrong positioning of rural self-development Many rural tourism and leisure agriculture ventures in China suffer from homogenisation issues. They often lack distinctive positioning and merely replicate existing rural development models, resulting in unsuccessful tourism endeavours despite government support. For instance, many farmhouses offer basic dining, chess, and fishing activities without diverse entertainment options or unique experiences that showcase the local agricultural and cultural characteristics.
Damage of the agricultural ecological environment China faces declining arable land, ongoing urbanisation, and unresolved ecological and environmental pressures, exacerbating the need for arable land protection. Chemical fertilisers and pesticides are increasingly relied upon to boost yields due to rural population density. However, their inefficient use leads to pollution of farmland, organic pollution, eutrophication, and potential contamination of groundwater and the atmosphere.

Source: adapted from Hu (2024); Li et al. (2021) & Zhang (2022)

Based on Table 2, it appears that China has undergone rapid urbanisation over the past few decades, with millions migrating from rural areas to cities in pursuit of better opportunities. This trend has resulted in the underdevelopment of many rural areas, which now grapple with depopulation, aging demographics, and declining economic prospects (Xu & Zhai, 2023). Recognising the significance of rural areas for social stability and balanced development, the Chinese government has implemented various policies to revitalise these communities. These initiatives have included investments in infrastructure, agricultural modernisation, poverty alleviation programs, and the promotion of rural industries (Wu et al., 2022; Kamarudin et al., 2024; Li et al., 2021). However, despite these efforts, challenges such as poor infrastructure and limited economic opportunities persist in many rural regions. Moreover, a mismatch between labour costs and income, coupled with environmental degradation, has hindered sustainable development in these areas (Li et al., 2021; Zhang, 2022). In response to these challenges, the concept of smart shrinkage has garnered attention as a strategic approach to managing population decline and optimising resources in shrinking regions (Richarson & Nam, 2014; Hu, 2024). Smart shrinkage emphasises innovation, technology integration, and community engagement as means to address the unique challenges facing declining rural communities (Hu, 2024; Martinez-Fernandez et al., 2016; Xu & Zhai, 2023). The following section will delve into further discussions on the smart shrinkage concept.

Rural Rejuvenation through Smart Shrinkage Strategies

The concept of Smart Shrinkage originated from the German management model for the poorer and more dilapidated socialist cities in Eastern Europe, which was mainly aimed at the economic and physical environment problems of cities with declining populations. According to Popper and Popper (2002), the concept of smart shrinkage can be defined as “planning for less-fewer people, fewer buildings, fewer land uses”. This definition can be translated into planning actions/strategies for instance, reinventing the purpose of the built environment by transforming former industrial sites into tourist attractions or plazas for creative industries, or handing over vacant buildings to local social and cultural associations and organisations to arrange activities and services for local residents (Hollander & Nemeth, 2011). Another example is related to deconstruction by bringing regional infrastructure to a reasonable scale by demolishing vacant buildings and transforming them into green or open spaces (Cahill, 2009).

In the context of rural China, the concept of smart shrinkage is relevant due to population decline, economic depression, and spatial decay caused by urbanisation pressures. While the development context differs from shrinking cities in Europe and the United States, the concept offers valuable insights for addressing rural challenges and inspiring Chinese rural development (Gao, 2018). The very essence of smart shrinkage, according to Hu (2024), is that instead of trying to reverse depopulation, the concept emphasizes improving quality of life, sustainability, and resilience for the remaining population through: (1) right-sizing infrastructure and services—optimizing roads, utilities, and schools to match a smaller population, thereby reducing maintenance costs and improving efficiency; (2) land repurposing and ecological restoration—converting vacant land into green spaces, community gardens, or conservation areas; (3) economic diversification—encouraging new economic activities such as niche agriculture, renewable energy, or heritage tourism to sustain local livelihoods; (4) community engagement and governance—ensuring local needs are met by involving residents in planning; and (5) targeted investment—focusing resources on key areas such as healthcare, broadband access, or sustainable housing.

An extensive review of the literature uncovered several case studies from China and abroad that provide a broader perspective on rural shrinkage and smart shrinkage strategies. As shown in Table 3, the comparison of smart shrinkage strategies across different case studies highlights diverse approaches to addressing rural depopulation and economic decline. In China (Chengdu), rapid settlement expansion despite population loss led to compact village planning, green infrastructure, and tourism-based revitalization, emphasizing the need for sustainable government-led planning while preserving rural identity. Japan’s Akiya Compact Village Planning tackles aging populations and high vacancy rates through property reuse and compact village development, demonstrating the importance of economic diversification in sustaining rural communities. In the United States’ Rust Belt and Midwest, industrial decline and job losses prompted agritourism, business incubators, and rightsizing of services, showcasing the effectiveness of community-driven diversification strategies. South Korea’s Saemaul Undong Movement counteracts urban migration and rural stagnation through smart farming and rural digitalization, proving that government incentives and technological adaptation can revitalize rural economies. These case studies collectively suggest that while government-led initiatives provide structure, long-term sustainability depends on balancing planning policies with grassroots engagement, economic diversification, and adaptive reuse of resources to ensure resilient rural communities.

Table 3. Comparison table of smart shrinkage strategies across case studies

Country Source Main challenge Key smart shrinkage strategies Lessons learned
China (Chengdu) You & Chen (2019); Li et al. (2023) Expanding settlements despite population loss Settlement Model: Compact villages, green infrastructure, tourism Government-led planning needs sustainability & rural identity preservation
Japan (Akiya Compact Village Planning) Martinez-Fernandez et al. (2016); Li et al. (2023) Aging & high rural vacancy rates Akiya housing reuse, compact village planning Property reuse & economic diversification sustain rural communities
United States (Rust Belt & Midwest) Wiechmann & Pallagst (2012) Industrial decline & loss of jobs Agritourism, business incubators, rightsizing services Diversified economies & community-driven efforts are key
South Korea (Saemaul Undong) Kim & Lee (2014); Li et al. (2023) Urban migration & rural stagnation Saemaul Undong, smart farming, rural digitalization Government incentives and digital tools boost rural vitality

Building on these insights, applying smart shrinkage to rural development in China presents a contemporary model for restructuring rural areas amidst passive decline. By identifying village-specific challenges and opportunities, respecting local realities, and adhering to objective development principles, this approach allows for differentiated spatial development, optimized resource allocation, and rural revitalization. Through these strategies, smart shrinkage enhances resource efficiency and fosters a more resilient and sustainable countryside.

RESEARCH METHODOLOGY

This research primarily adopts a quantitative research methodology aimed at identifying a level of rural shrinkage in Chitu village, China. The assessment of the rural shrinkage was based on a comprehensive set of indicators from the literature review (Hu, 2024). The analysis process employed frequency analysis, were conducted from October 2023 to December 2023, involving 85 respondents in a household survey process. The following are the details and key stages involved in this study:

  • Literature Review: A comprehensive literature search was conducted using keywords of “smart shrinkage,” “shrinking cities,” and “hollow villages”, both domestically and internationally. The results from literature search have provided useful insights for researchers to establish a list of assessment criteria for rural shrinkage.
  • Field Research and Data Collection: Field research was conducted in Chitu village between October 2023 to December 2023 to gain practical insights and firsthand understanding of the village’s current situation. A questionnaire survey was used to gather data and enhance understanding of the village’s challenges and opportunities amidst the condition of shrinkage.
  • Data Analysis: The collected data were organized and classified for analysis, covering aspects such as population trends, economic conditions, and spatial characteristics. Mathematical models were applied to identify patterns and inform smart shrinkage strategies (Table 4).

While the researchers acknowledge the advantages of a mixed-methods approach—which integrates qualitative insights from interviews or focus group discussions (FGDs) to complement the quantitative findings—this research was concluded over a year ago, making it impractical to collect additional qualitative data. However, this limitation is recognized and acknowledged as part of the study’s research constraints. Future research, from the researchers’ point of view, could adopt a mixed-methods approach to provide a more comprehensive understanding of rural revitalization challenges and opportunities.

Study Area

As a developing nation, China is undergoing rapid urbanisation across its regions. The authors conducted an analysis of 20 villages, drawing from 30 articles on rural aging and shrinkage, along with government development reports, to identify suitable candidates for this research. Chitu Village was chosen as the study area based on several selection criteria, including proximity to urban centres, declining workforce, aging population, fragmented layout, underutilised land, limited facilities, reliance on agriculture, and historical significance. Upon evaluating the current state of Chitu Village, researchers determined it to be the epitome of an aging and shrinking rural community, possessing all the characteristic traits associated with this phenomenon.

Based on Figure 1, Chitu Village is situated in the agriculture-concentrated of the southeast region of China, characterised by plains and a few preserved historical buildings. Due to its location, industrialisation has not directly impacted its development, unlike the fast-paced growth observed in the southeastern coastal cities such as Quanzhau and Xiamen since China’s reform and opening-up (Hu, 2024). This coastal development has drawn rural labourers away from central and western agriculture regions like Zhangpu and Chitu areas. Additionally, with over 10 per cent of its population aged over 60, Chitu Village exemplifies the aging trend seen in economically disadvantaged rural areas across China. This makes it a valuable model for planning and development strategies, offering insights into addressing challenges posed by aging and decline within the framework of China’s new urbanisation strategy.

Location of Chitu village in the Zhangpu County, Fujian Province of China

Figure 1. Location of Chitu village in the Zhangpu County, Fujian Province of China.

FINDINGS AND DISCUSSION

The Shrinkage Status of Chitu Village

The authors gathered data on population, infrastructure, economic activities, and environmental factors of Chitu Village aiming to provide a precise assessment of the village’s aging and shrinking status, as detailed in Table 4.

Table 4. The Result from the assessing the shrinkage status of Chitu village

Criteria Sub-criteria Statement / Formula / Range Result / Value Shrinkage status
Architecture and Space Housing vacancy rate HR = IR/HQ ×100%,

HR = rate of hollowing out of village homesteads (%)

IR = number of unused and abandoned homesteads in the village (cases)

HQ = total number of homesteads in the village

HR =152 / 1070 × 100% = 14%

Note: no shrinkage (HR = 0), mild shrinkage (0 < HR ≤ 5%), moderate shrinkage (5 < HR ≤ 10%) and severe shrinkage (> 10% HR)

Falls under category of severe shrinkage (HR >10%)
The proportion of inefficient residential land [25] LR = LH / HQ ×100%.

LR = share of inefficiently utilised homesteads in villages (%)

LH = number of inefficiently utilised homesteads in the village (cases)

HQ = total number of homesteads in the village

LR = 197/ 1070 100% = 18.4%

Note: no shrinkage (HR = 0), mild shrinkage (0 < HR ≤ 5%), moderate shrinkage (5 < HR ≤ 10%), and severe shrinkage (10% < HR)

Falls under category of heavy degree of shrinkage (>10%)
Number of houses lots per household Ratio = Num. of households / Num. of registered households Ratio = 1070/551 = 1.94 Increase phenomena of “multiple residences for one household” – leading to expansion of the village land but the houses are unoccupied
Population Population density ratio [15] (Mao 2015) Density = Pr/S and

V = DensityT2023/DensityT2015

Note: criteria of V ≤ 0.75 significant decrease, 0.75 < V ≤ 0.9 decrease, 0.9 < V < 1.1 basically unchanged

V = 0.806 The density of resident population in Chitu Village is in decreasing
Elderly population ratio [25] Ko = P(60)/P × 100%

Note: coefficient value is greater than 10% as entering the stage of aging, 20% to 30% as deep aging, and greater than 30% as super-aging

Ko = 26.1% Chitu village has already entered the stage of aging (26%)
Economic industries (n=85) Per capita income level Per capita income level of the residents, measured in Yuan currency (1 USD = 7.195 yuan)

 

e.g., 50,000-yuan equivalent to USD6,950

% of annual income level (in yuan):

·    <10000 = 12%

·    11000 – 20000 = 25%

·    21,000 – 50000 = 48%

>51000 = 15%

It appears that those reliant on agriculture, have low incomes. The growing trend of people seeking work outside their villages has worsened countryside depopulation
Trend of per capita income Per capita income is measured in 10,000 yuan, for the period of 2015, 2018 & 2023 ·    2015 with the score value of 1.73

·    2018 (1.94)

·    2023 (2.01)

Annual per capita income has increased compared to the previous year.

This suggests that as farmers’ net incomes rise, they are more willing and able to expand their homes, leading to the expansion of rural areas and worsening countryside depopulation.
People working in different industries Data is based on the statistical yearbook of Ga’an City and through field study in 2023. The dominant industry in Chitu Village is rice cultivation, yellow pear, oil tea, and peanut as the main industries. Source of income:

·    Woking in the city (34%)

·    Agriculture (53%)

·    Cottage industry (2%)

·    Cultivation field (2%)

Other od-jobs (2%)

The ratio of people working outside the village to those engaged in agriculture and other professions is approximately 3.4 to 5.3 to 1.3.
Environment (n=85) Garbage removal rate Despite 11 collection sites, waste is still found on roadsides, and sewage is discharged onto streets, resulting in poor sanitation.
Village greening rate Field research and satellite data estimate Chitu Village’s greening rate at 29%, below the recommended 30% for plains-type villages, indicating inadequate environmental development.

Source: Research fieldwork (2024)

Based on the analysis presented in Table 4, Chitu Village faces issues such as population decline, loss of labour force, and significant aging. Spatially, the village has numerous vacant houses resulting in a surplus of unused residential areas and low space utilisation. Chitu Village’s primary industry dominates its economy, and while transportation links to urban areas are convenient, there’s a considerable distance from the urban core, placing it in the category of reserved villages (Table 5). These findings can serve as a reference for similar rural villages in terms of development and planning, offering a theoretical foundation for China’s new urbanisation strategy amidst rural aging and decline.

 Table 5. Summary of Chitu’s shrinkage status as a reserved village

Observation components Explanations
1.     Location relationship Far from cities and townships
2.     Population change Declining population and loss of labour force population, aging
3.     Spatial changes Fragmented layout, low spatial aggregations, large number of idle residential bases
4.     Industry changes Primary industry is the main industry
5.     Shrink mode Proactive shrinkage
6.     Development direction Preserve traditional characteristic space

Smart Shrinkage Planning Strategies

The planning of an aging village, based on the concept of smart shrinkage, involves optimising and reorganising population distribution, architectural space utilisation, economic and industrial resources, and environmental aspects in Chitu Village. This approach is necessary due to issues such as population decline, significant aging, land expansion, and inefficient resource utilisation, all of which hinder the village’s development potential. Therefore, the proposed of village planning strategies should not only address the current state of shrinkage and safeguard the interests of the elderly population but also align with the principles of sustainable development. Figure 2 illustrates smart shrinkage planning strategy framework of Chitu village.

Drawing from research findings and a review of successful implementations of smart shrinkage in revitalising rural communities, this article proposes planning strategies across four key aspects. These include protecting and fostering the village population, managing, and optimising village resources and industries, enhancing village architecture and spatial planning, and promoting sustainable development and design of the village environment and ecological resources. Refer to Table 6 for the details of the smart shrinkage planning strategy framework of Chitu village.

Figure 2. Smart shrinkage planning strategy framework for Chitu village.

Table 6. Smart shrinkage planning strategy framework for Chitu village

Key aspects Smart shrinkage strategies
1.     Protect and foster village population ·       Improve the social security policies for rural residents and aging population.

·       Protect the remaining labour force in the village, and to enjoy the same basic public services as those in cities.

·       Establish cooperation between the government, social enterprises and institutions and the villages to protect the rights of all parties in terms of funds, investment and development modes, and resource management and operation mechanisms.

·       Adopt diversified financing channels, for the village of unused resources in different situations.

2.     Manage and optimise village resources and industries ·       Optimisation of industrial space, industrial mode and industrial type aims to change the mode and concept of production and management, inject new kinetic energy into the village and provide a new mode under the guidance of national policies.

·       Give prospect for integrating the development of primary, secondary, and tertiary industries in rural areas.

·       Improve industrial income through industrial upgrading, industrial implantation and industrial expansion including in rural tourism.

·       Joint production collaboration to transform the smallholder model.

·       Explore the potential of the elderly and local cultural characteristics to create a distinctive brand.

3.     Enhance village architecture and spatial planning ·       Improve the efficiency of space use, alleviate the development of disorderly land development.

·       Effectively integrate the unused buildings in the village to rejuvenate their vitality and functional replacement of farm buildings to activate idle resources.

·       Sorting out the village fabric and preparing spatial plan.

·       Promote the infrastructure and public facilities in the village to play the maximum use of efficiency within the appropriate scope.

4.     Promote sustainable development and design of the village environment and ecological resources. ·       Nurturing the base and systematic planning to create a rural idyllic atmosphere – redesign public parks, public restroom, etc.

·       Reclamation of abandon farmland and ecological restoration to reshape the natural appearance of villages.

·       Improvement of the environment and landscape activation to create a scenic village ecology.

As shown in Table 6, promoting balanced and sustainable development while preserving its unique cultural and environmental heritage holds the key for an effective utilization of smart shrinkage strategies. To facilitate smart shrinkage for Chitu village, it is essential to focus on four main suggestions: protecting and fostering the village population, managing, and optimising resources and industries, enhancing village architecture and spatial planning, and promoting sustainable development and design of the village environment and ecological resources. This involves implementing policies to retain residents through affordable housing and healthcare, diversifying the economy while conserving natural resources, developing a master plan for sustainable development, and promoting eco-friendly practices such as green infrastructure and sustainable agriculture. By prioritising these strategies, Chitu can achieve balanced and sustainable growth while preserving its cultural and environmental heritage.

Furthermore, to effectively implement smart shrinkage strategies in Chitu Village, local government policies become very crucial in addressing spatial planning, economic revitalization, social welfare, and public-private partnerships. A flexible land consolidation policy can optimize underutilized spaces by repurposing vacant houses into community hubs, elderly-friendly housing, or tourism accommodations. Strengthening zoning regulations will ensure efficient land use while safeguarding historical structures and green spaces. Economic revitalization is essential for sustainability, with subsidies for agricultural modernization, eco-tourism, and digital industries helping to diversify income sources.

The local government can support this by fostering rural entrepreneurship programs, tax incentives, and digital infrastructure development (e.g., e-commerce and remote work hubs). In addressing demographic aging, targeted healthcare and social services—such as rural medical outreach, elderly cooperatives, and smart healthcare systems—should be prioritized, alongside increased financial support for healthcare facilities and mobile clinics. Additionally, public-private partnerships (PPP) can drive development, encouraging private investment in adaptive reuse of vacant properties and rural tourism enterprises. Offering incentives for joint infrastructure projects, such as road networks and broadband access, will further enhance Chitu Village’s resilience. By integrating these policy-driven strategies, local governments can facilitate a sustainable transformation, ensuring long-term rural viability within China’s new urbanization strategy.

CONCLUSION

Urbanisation plays a significant role in accelerating socialist modernisation, yet this process has led to the expansion of urban areas at the expense of rural development. Consequently, a paradox emerges: while urban populations grow, rural areas experience decline. Hence, deepening the contradiction between planning and actual shrinkage, as well as exacerbates planning challenges and contributes to rural ecosystem degradation and aging populations. The shrinkage of the rural areas in China in general and in Chitu village in particular, is primarily driven by rural-to-urban migration amid rapid urbanisation. Drawing on research and practical experiences of smart shrinkage theory, this article conducts a field analysis of Chitu village to explore the feasibility of future development strategies for aging and contracting rural villages guided by smart shrinkage principles. As a result, a more possible strategies for the development of aging rural villages to achieve rural renewal in the context of China’s rapid urbanization can be realised in the future.

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