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This research article contributes to the field of digital governance as it reviews the conceptual definition and practical application of “smart cities” in the context of urban development in China. By analyzing both firsthand interview data and secondary statistical and policy reports during the period between 2009 to 2019, we contend that the emergence of smart cities in China has evolved from a disorderly process to a more standardized one. During this process, cities made efforts to use digital technology — such as 5G, cloud computing, and the Internet of Things — in social governance, infrastructure, and industrial development. However, such rapid development also spawned a series of emerging legal issues, which had a huge impact on China’s legal system. The article seeks to holistically examine the discourse surrounding the concept of a “smart city” and its practical implementation by drawing attention to its promises as well as criticisms. The article also touches upon the challenges — such as “information islands” in construction, technology, and management — that confront the emerging smart cities, and emphasizes China’s need to further improve laws and regulations, build an integrated legal system, explore new regulation methods, shape a highly autonomous and refined governance order, and provide legal protection for the development of smart cities. The paper concludes by mentioning possible areas for further research to find a developmental path for “smart cities” that can realize resource integration and sharing.