By nature or by nurture: the formation of new economy spaces in Shanghai

In recent years, the new cultural economy has been gaining a foothold in many Asian cities and this represents the latest phase of industrial formation and urbanization, particularly but not exclusively for post-industrial societies in the region. Mainly based on in-depth interviews, literature reviews and on-site observations, this paper tries to explain how M50 in Shanghai had been transformed from an ailing socialist textile enterprise into a trendy art district in a decade of time. The roles of the Chinese state in urban transformations offer normative insights into urban boosteristic economic development policies which have been popularly practiced in many Asian cities. It is argued that M50 was largely spontaneously formed; however, certain public policies in urban historic conservation could have helped smooth out the transition.