This paper studies the culture commercialization phenomenon in China, through the analysis of the region of Shanghai as a creative hub. While this paper contributes to a large body of literature focusing on creative clusters, it is providing a new integrated economic vision of China, as the country is advancing from a developing economy to a more mature state.
Between urban regeneration, social inclusion and economic growth, the present study aims to explore the precise processes and consequences of modern Chinese cultural initiatives. In order to do so, this paper first includes a review of previous literature allowing the establishment of a cultural analytic framework. This is then used to analyze Shanghai, first as a creative city and then as the origin point for the creation of a network effect impacting its entire direct regional environment.
This research finds that Shanghai, similarly to many of its western cultural equivalents, is at the forefront of cultural innovation. The establishment of the city as a creative and cultural capital reflects China’s potential appetite for a softer economy. However, while this indicates an interesting political direction, it is also another cause for increased social tensions, and has produced a vast array of undesired outcomes. While these consequences are not as present as they were in the past, they still constitute an important challenge for government officials and potential foreign investors.

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