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This chapter looks into China's experiences with embracing new steering instruments to promote social stability, with particular reference to the protection of households involved in city regeneration projects. During the closing years of the twentieth century, China experienced a fundamental transition, from a planned mode of urban regeneration to a new pattern that emphasised the involvement of the market. Under the planned regime, households affected by regeneration projects were provided with new apartments and temporary housing, all financed by the local government. Economic incentives were rarely employed to encourage households to resettle, as resettlement was seen as a civil obligation. The new approach, featuring marketisation, however, requires the affected households to pay for their new houses using monetary compensation and subsidies from the local governments. The local governments are strongly motivated to save such costs and thus provide limited compensation, and consequently complaints from the affected households have continued to grow (Peerenboom & He, 2009).