City renovation focusing on transformation of urban underground pipe networks
What
- Importance: In May 2025, the State Council issued the “Opinions on Continuously Advancing the Urban Renewal Initiative”, setting a goal of achieving substantial progress by 2030. The initiative prioritizes renovating aging residential areas, upgrading functional facilities, and enhancing overall urban quality. On one hand, urban renewal can improve residents’ quality of life, on the other hand, it serves as a powerful catalyst for stimulating investment demand and driving economic growth.
- Business opportunity: In 2026, ultra-long-term special treasury bonds will be earmarked for the construction and upgrading of three key pipeline networks: gas, drainage, and water supply. Eligible projects may receive funding of up to 70% of their approved total investment. The initiative will be coordinated and overseen by the Investment Department of the National Development and Reform Commission. There are many types of pipeline consumables used in network construction, including centrifugal casting ductile iron pipes, steel pipes, cast iron pipes, prestressed reinforced concrete pipes, plastic pipes. The companies concentrate on those materials and pipe products will benefit..
- Concrete project plan: Both central and local governments have released project plans. Below are two examples: The Ministry of Housing and Urban-Rural Development has announced that in 2026, China will continue advancing underground pipeline renovations and the construction of integrated utility corridors. Efforts will include the systematic upgrading of aging urban gas pipelines, with a target of completing renovations on 30,000 kilometers of various gas pipelines.
- Chengdu city of Sichuan province: From 2024 to 2026, the plan includes upgrading and renovating gas pipelines with a total length of no less than 1,070 kilometers. It also calls for the implementation of water supply network and related facility upgrades, covering no less than 75 kilometers. Additionally, drainage network improvements are planned, with rainwater pipelines totaling no less than 72 kilometers and sewage pipelines no less than 90 kilometers
HOW
Business Sweden is very active and engaged within the segment. Since 2022, Business Sweden has introduced Pioneer the Possible in China, a platform designed to assist Swedish companies in achieving their carbon neutrality objectives and showcasing Swedish sustainable solutions to the Chinese market.
Contact us
For more information contact Amanda Alkemark at amanda.alkemark@business-sweden.se.