As smart city initiatives proliferate globally, whether they genuinely foster inclusive and participatory governance remains unclear. This study examines the “smart governance paradox” by integrating macro-level evaluations of urban smartness with micro-level analyses of citizen perceptions across six large Chinese cities. At the macro level, we construct a Smart City Development Index using factor analysis and a neural network optimized by genetic algorithms. Results reveal significant regional disparities: some cities (Beijing and Shanghai) lead in smart economy, infrastructure, and innovation, while others lag in mobility and connectivity, highlighting uneven implementation capacities. At the micro level, we analyze 2021 Chinese Social Survey data using ordered logit models to examine associations between smart city development and public perceptions. Smart city development is positively associated with perceived trust, fairness, and protection, but negatively associated with civic participation—especially among younger demographics. This disconnect suggests that technological development may accompany favorable service-related perceptions while correlating with lower community engagement, potentially reflecting digital substitution and governance centralization. We propose reframing “smartness” as a socio-political construct emphasizing inclusion, responsiveness, and equity, and offer policy recommendations bridging digital efficiency with democratic engagement.
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