Taishan Community in Shanghai's Putuo District boasts a refurbished community market where neighbors congregate. Inside, locals peruse over 80 renovated stores and 156 food vendors.

A new public area holds weekend fairs and cultural events. The area, once divided by high walls and decrepit amenities, now attracts a steady stream of visitors from surrounding neighborhoods.

Across town, in Yangpu District, the scene is different. Daxue Road, a 700-meter-long commercial thoroughfare, is bustling with cafes and restaurants.

Nearly 90 percent of the 80 stores have set up outdoor dining areas, which are framed by flower boxes and lights. On weekends, the pedestrian strip is jam-packed with young people, with single-day numbers topping 130,000.

Both locations are examples of Shanghai's efforts to improve the business environment at the grassroots level, where small companies and daily life intersect.

Taishan Community was established in the 1980s as a cluster of public housing complexes. Residents have long complained about the cramped and outdated layout.

A major renovation changed that, providing three new entrances, reducing obstacles, and adding almost 8,000 square meters of recreational area.

The changes are more than physical. Officials adopted a rapid response model to expedite services. Departments, from planning to market supervision, ensured the project worked for both businesses and residents.

"Community bakeries naturally grow with the residents," said Yu Zhongqi, manager of Sun Beibei Bakery. "More people are coming every week, and our sales are rising steadily."

The bakery was among the first to join the project, working with community planners from the start. Local regulators offered training before opening and introduced a food safety alliance where merchants sign responsibility agreements.

"The idea is to keep food safe but not to disturb merchants unnecessarily," said Guo Xiaoyi, from the Yichuan Market Supervision Office.

At a recent community meeting, residents' requests ranged from bicycle parking to healthier food options in the community canteen.

"We are studying more bike racks," one official responded. "And the kitchen will reduce oil, salt, and sugar."

"The hardest thing is coordinating businesses, residents, and departments so that everyone is satisfied," said Tang Weijun, deputy director of the Putuo Development and Reform Commission.

On Daxue Road, the challenge was different. The street became one of the city's first limited-time pedestrian zones in 2023.

Since then, the street has hosted nearly 90 large events, ranging from art festivals to street carnivals. Together they attracted well over 10 million visitors, bringing in 2.9 billion yuan (US$407 million) in sales.

But outdoor tables once caused conflict. Merchants competed for space, and pedestrians complained of blocked sidewalks.

"Young people like sitting outside. It feels relaxed. Our sales went up when we set up chairs," said Zhang Hanle, 27, who runs the dessert shop Yishao Rice Gelat.

"The authority also gave us clear rules, like how high flower boxes can be. That keeps things fair for everyone."

Chili's, an American-style eatery, had only eight indoor tables. Outdoor dining doubled its capacity.

"Last winter, the street gave us transparent windshields. In February, our sales jumped 38 percent compared to the year before," said Jiang Qiwen, the manager.

"People want lively streets, but order and safety matter too. Outdoor dining is allowed in certain zones. We ask merchants to keep sidewalks clear and handle waste properly. It's about finding common ground," said Zhang Hao, from the Shanghai Urban Management Bureau.

Outdoor markets and street dining have a long history in Shanghai. From the 1930s through the 1970s, open-air food stalls lined many streets.

From 2000 to 2010, the city launched a campaign to "return roads to the people," moving vendors off main streets. Between 2011 and 2021, strict source management kept outdoor stalls to a minimum.

That changed in 2022, when the city shifted to "precise governance," allowing controlled outdoor dining and markets.

In 2023, the first timed pedestrian streets opened, making al fresco dining a new feature of Shanghai's city life. Today, more than 500 official outdoor dining and market points operate across the city, such as Xintiandi and Daxue Road.

Both Taishan Community and Daxue Road show the city's "co-governance" approach, where businesses, residents and government share responsibility.

"At first, people worried about noise or safety," said Zhu Yufang, head of the Taishan Community Service Center.

"We held many talks and adjusted the plan together. Now most residents say it's more convenient, and the market is cleaner than before."

On Daxue Road, a self-management committee was set up in 2019 to handle disputes over parking, cooking fumes, and noise. Residents, shop owners and the street office met regularly to adjust rules.

"The unique part of Daxue Road is the logic of co-existence – government, operators, merchants, and residents rely on each other," said Pan Jiawei, Party secretary of the Daxue Road community.

At Taishan, bakery manager Yu sees it every morning. "More and more neighbors stop by for bread. It's becoming part of their daily life," he said.

On Daxue Road, Zhang recalls one event that brought in an unexpected crowd.

Pop sensation Eason Chan participated in a street-side promotion in August that featured enormous inflatables and freebies.

"Our sales went up 40 percent in that week," he said. "But more important, it showed how the street itself has become a stage, and every shop is part of the performance."