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This article investigates whether residents have been able to regain their sense of belonging and neighbourliness after being resettled in urban China and what factors have prevented or enabled them to do so. There is a growing body of work examining the post-resettlement community relations of residents. However, this process of community rebuilding is mostly understood as resident-led and little is known about the role and influence of state actions such as state-led community building and changing resettlement policies. Our study addresses this gap by drawing on the case of Hesha Hangcheng which is one of Shanghai's major relocation settlements. Our findings, from analysing a household survey and interviews, show that the sense of belonging and neighbourly relations of residents are poorer compared to before they were resettled. The analysis further reveals that residents who are more satisfied with their new housing and neighbourhood tend to have better neighbourly relations and sense of belonging compared to those who are not satisfied and feel they have lost out from the resettlement. Additionally, the state's efforts in rebuilding communities by providing more community organisations and activities have given residents a platform to encounter each other and help facilitate neighbourliness and a sense of belonging. Theoretically, our study contributes by revealing the interplay between residents and state-led community rebuilding efforts and how they have affected post-resettlement community relations. [ABSTRACT FROM AUTHOR]