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With the increase of global integration, the peri-urban area (PUA) of megacities in Asia has become a favourite destination for foreign direct investment (FDI). This paper uses the PUA of Shanghai as a case study to investigate the impact of global forces on the urban expansion of the city, and the link between urban growth and sustainable development in this mega-urban context. Shanghai has grown impressively during the past two decades in terms of economic and physical transformation. Much of this transformation has rested on the unbridled exploitation of land and other environmental resources in its peri-urban area. This is characterised by the designation of development zones and the concentration of manufacturing FDI, resulting in dispersed growth and environmental degradation. The disruption of the physical environment, combined with the concentration of the urban poor in these areas (in particular ‘temporary migrants’), has turned the PUA into a potential crisis point threatening the social and economic development of the city. [ABSTRACT FROM AUTHOR]

Rapid urban growth has become a global phenomenon. As these city populations expand, urban governance is even more of a daunting challenge in many countries. China is not an exception. It is at once a transitional state still undergoing urbanization and economic development; it is also currently experiencing a slowing economy. China's cities must simultaneously continue to improve the quality of urban life while maintaining social stability. Using the city of Guangzhou as an example of China's mega‐cities, this study explores the financing strategies used by Chinese cities to manage urban growth. While economic growth has always been the main priority, Guangzhou's strategy has not followed China's traditional approach of growth for growth's sake; instead, it is relying on investment in innovation and transportation to promote the local economy. Education is also being stressed as a means of fostering human resources. However, undisciplined infrastructure financing and ineffective intergovernmental fiscal relations are jeopardizing the city's fiscal sustainability. To correct this will require further reforms of China's fiscal system and a careful sequencing of reforms to maintain a sustainable growth in the urban area. [ABSTRACT FROM AUTHOR]