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In this study, the ‘Peasants going upstairs’ policy in China, hailed as modernization by the government, is critically examined. This policy, aimed at transforming rural homesteads into urban skyscrapers, raises fundamental questions about the nature of modernization, ownership, and whom these transformations truly serve. Utilizing social trauma theory and examining the implications of urban expansion, the study reveals a complex social integration challenge. It highlights the increased vulnerability of peasants transitioning to urban citizens and the encroachment of market logic into social life. The findings underscore the need for a more nuanced approach to urbanization, one that goes beyond physical transformation to genuinely address the critical aspects of social integration and community belonging in the modern urban landscape.