China Launches Cybersecurity Labels and Major Urban Renewal Plan
China is rolling out two major policy initiatives on July 1: a new cybersecurity labeling system for networked consumer products and a sweeping urban renewal plan targeting 1,500 old neighborhoods and industrial zones. The twin announcements, reported by state media on June 30, signal Beijing’s dual focus on digital security and urban revitalization as part of its broader governance agenda.
Cybersecurity Labels for Smart Devices
Starting July 1, the Cybersecurity Labeling Management Measures, jointly issued by the Cyberspace Administration of China (CAC), the Ministry of Industry and Information Technology, and the Ministry of Public Security, will require standardized security labels on network-connected products. The first product category covered is consumer-grade networked cameras — smart cameras used in homes and small businesses.
The regulation establishes a three-tier rating system. The Basic level (one star) requires products to meet national security standards, including no weak or default passwords, vulnerability management, and regular software updates. The Enhanced level (two stars) demands cybersecurity capabilities at the advanced industry level. The Leading level (three stars) requires products to pass penetration testing to defend against sophisticated cyberattacks.
Labels can be affixed to product bodies, packaging, user manuals, boot screens, or app interfaces. Online listings must display the label prominently, and each label includes a scannable QR code linking to testing reports and key indicators, as IT之家 reported.
Participation in the labeling system is voluntary, not mandatory. However, analysts expect market pressure to drive adoption. “The voluntary principle maintains a market-oriented approach, giving consumers more choices and forming a ‘better quality, better price’ selection mechanism,” wrote IoT analysts at OFweek, noting that similar voluntary programs in the United States have gained “quasi-mandatory” status through industry support.
The regulation aligns with China’s broader cybersecurity framework under the Cybersecurity Law (2017) and Data Security Law (2021). Consumer smart cameras have been a growing privacy concern, with incidents of unauthorized access and data breaches prompting regulatory action.
Urban Renewal: 1,500 Districts to Be Transformed
Separately, the government has released its first-ever national special plan for urban renewal — the “15th Five-Year Plan for Urban Renewal” — targeting the transformation of 1,500 old neighborhoods and factory zones. The plan, reported by People’s Daily, includes 23 key tasks across 10 major indicators.
Key targets include renovating 115,000 old residential communities, upgrading 500,000 dilapidated housing units, building or renovating approximately 770,000 kilometers of underground pipelines, and developing 5,000 complete communities with improved public services.
“We will promote the renovation of old neighborhoods and factory zones, creating conditions for new industries and new business formats through optimizing increments and revitalizing existing stock,” said Qin Haixiang, Vice Minister of Housing and Urban-Rural Development, at a State Council press conference.
Funding and Land Reform
The plan is backed by substantial government funding. Central budget investment for urban renewal totals 97 billion yuan in 2026, benefiting approximately 8 million households. An additional 160 billion yuan in ultra-long-term special government bonds has been allocated for underground pipeline projects, up 25 billion from 2025. Central finance subsidies are supporting 50 pilot cities including Beijing, Shanghai, Shenyang, and Luoyang.
Land policy reforms are a key feature. Old factories and neighborhoods can now accommodate diverse business formats — including technology innovation and community commerce — under a “positive list” system. Factories transitioning to cultural, creative, or elderly care industries can retain their original land-use designation for five years without paying land value-added fees.
Success Stories
The plan draws on successful pilot projects. Tianjin’s Color Weaving Factory, once a textile production hub, reopened as a tourism and leisure district, attracting approximately 120,000 visitors during the May Day holiday. Zhengzhou’s Oil Chemical Factory, built in 1952, has been transformed into “Zhengzhou Memory·1952 Creative Park,” drawing tens of thousands of daily visitors. Beijing’s Guomao Power Plant, a former thermal facility operating from 1958 to 2015, now hosts a digital art park with cafes, boutiques, and cultural enterprises.
Analysis and Outlook
The two policies reflect China’s approach to governance in the 15th Five-Year Plan period: tightening digital security standards while investing heavily in physical infrastructure and urban quality of life. The cybersecurity labeling system empowers consumers while creating competitive pressure on manufacturers, and the urban renewal plan represents one of China’s largest peacetime investments in city-level infrastructure.
Guan Peng of the NDRC’s Fixed Asset Investment Department confirmed that the government will support innovative financing models and encourage private sector participation in urban renewal projects. “For projects with strong innovation in investment and financing models and good demonstration effects, central investment will provide appropriate guidance and support,” he said.
As both policies take effect, their implementation will be closely watched — the cybersecurity rules for their impact on the smart device market, and the urban renewal plan for its ability to transform China’s aging urban fabric.