Beyond land financing: State entrepreneurialism and the restructuring of chengtou companies to sustain urban development

China’s land finance–driven state entrepreneurialism is threatened by an unprecedented property market downturn and the imposition of strict state regulations on land financialization. As such, it is important to consider how local governments and chengtou companies (urban investment and development companies) adapt to this new context to re-theorize state entrepreneurialism. Drawing on a case study of a Chinese eco-city, we theorize two types of strategies to reduce dependency on land financing. Vertical strategies use scalar politics to elevate the urban project area’s administrative level, allowing chengtou companies to restructure their equity and increase their decision-making power, financing, and investments in new sectors. Horizontal strategies entail adjusting business offerings through technological and organizational innovation to pursue new market opportunities. The results highlight how chengtou companies transformed to ensure the continued functioning of state entrepreneurialism beyond land financing.